Banks urge government for Tax incentives to boost infrastructure financing, support $1trn economy vision
Banks in Nigeria have appealed to the Federal Government to introduce tax incentives and reliefs for financial institutions that fund infrastructure and mining projects, similar to practices in countries like China and Brazil.
Chairman of the Body of Banks’ Chief Executive Officers and Group Managing Director of United Bank for Africa (UBA) Plc, Mr. Oliver Alawuba made this appeal during the 36th Seminar of the Finance Correspondents Association of Nigeria (FICAN) held in Abuja.
The seminar was themed: “Banking Recapitalisation Towards a One-Trillion Dollar Economy: The Industry Perspective.”
Alawuba emphasized that tax incentives tied to recapitalisation-related investments and partial refunds of the Cash Reserve Requirement (CRR) allocated to infrastructure financing would be critical in achieving Nigeria’s vision of a $1 trillion economy.
He also highlighted the need for enabling legislation for long-term capital mobilisation, improved strategic communication, capacity building, and stakeholder engagement.
Referring to the Central Bank of Nigeria’s recent policy on banking recapitalisation as a “landmark shift,” Alawuba called it a timely and strategic move to strengthen the financial system in alignment with national economic goals.
“Strong economies are built on strong banks,” he stated, noting that banks must reimagine their roles as economic enablers.
He identified several challenges to reaching the trillion-dollar GDP target, including regulatory bottlenecks, security issues, limited financial accessibility, and inclusion.
According to him, Nigerian banks are now expected to finance both traditional sectors like oil and gas, agriculture, and manufacturing, as well as emerging areas such as FinTech, green energy, and infrastructure. Without adequate capital buffers, he warned, banks would struggle to meet these demands.
Alawuba urged the banking sector to lead in compliance, vision, innovation, and economic stewardship, while calling on regulators to maintain guidance with wisdom and flexibility.
“Let us reimagine banking as a force for national development, and commit ourselves to building an economy that works for every Nigerian,” he concluded
