Banks battling with regulation, high compliance costs— Elumelu

…As EFCC goes after top bankers over frauds

Tony Elumelu, group chairman of United Bank for Africa (UBA) Plc, has highlighted significant challenges facing Nigeria’s banking sector, including regulatory hurdles and high compliance costs, which he believes are impeding growth and innovation.

Elumelu spoke at the annual banking and finance conference organised by the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja on Tuesday.

This was as President Bola Tinubu, who declared the conference open, said the government was working to tackle Nigeria’s prevailing macroeconomic challenges by reducing inflation, stabilising the foreign exchange market and improving fiscal management.

Represented by Vice President Kashim Shettima, Tinubu called for collaboration across all sectors, including the government, private industry, and civil society organisations to achieve sustained economic growth.

At the event, Ola Olukoyede, chairman of the Economic and Financial Crimes Commission (EFCC), announced that high-profile prosecutions were imminent for banks and top officials implicated in major financial frauds.

For Elumelu, to address the concerns about regulation, there was a need for constructive dialogue among government agencies, regulatory bodies, and banking institutions to foster a more collaborative environment.

“Our banking sector is a cornerstone of Nigeria’s economy. Its transformation over the last few decades is one of our success stories,” Elumelu stated. He praised the sector for employing millions, providing crucial financial support to businesses, and generating income for shareholders. However, he warned that these achievements are threatened by rising compliance costs and regulatory constraints.

Elumelu urged stakeholders to work together to build a more resilient banking sector that can drive economic growth and support the aspirations of Nigerians. He noted that the success of the Nigerian banking sector extends beyond the country’s borders.

“Nigerian banks have become multinationals, leading the sector across Africa and establishing themselves in the world’s financial capitals. They have changed how our country is perceived and set themselves up as role models for other industries,” he added.

In his keynote address titled, “Accelerated Economic Growth and Development: The State of Play and the Way Forward,” Elumelu outlined a strategy centred on three critical areas for shaping Nigeria’s economic future:

Supporting Elumelu’s views, Oliver Alawuba, group managing director of UBA Plc and chairman of the 17th annual banking and finance consultative committee, encouraged participants to transform the knowledge and strategies shared during the conference into tangible actions.

“Our collective future depends on the steps we take today to innovate, collaborate, and drive progress,” Alawuba stated. He urged all attendees to leave the conference determined to execute strategies that would build a financial sector capable of powering the economy, uplifting the people, and transforming the world.

Also speaking at the event, Olukoyede, the EFCC chairman, announced that high-profile prosecutions are imminent for banks and top officials implicated in major financial frauds. Olukayode revealed that the EFCC has completed extensive investigations into significant financial crimes, many of which have severely impacted Nigeria’s economy.

In a blunt address, the anti-graft agency chairman described the scale of the frauds as ‘mind-boggling,’ highlighting their detrimental effects on the nation’s financial stability.