Stories by Chinwendu Obienyi
After 64 years of independence, Nigeria, judging by current political and economic steps, appears to be on a journey of economic recovery.
Currently, the country stands at the cusp of a major transformation, not only for its domestic market but for its place in regional and global trade.
With the African Continental Free Trade Area (AfCFTA) now in force, economists note that Nigeria has a unique opportunity to capitalise on its economic rebound and diversification efforts to strengthen its position as a regional powerhouse and increase its competitiveness on the global stage.
The implications of this moment are vast, offering the potential for Nigeria to reshape its trade dynamics, diversify its economy, and assert itself as a key player in the intra-African trade landscape.
AfCFTA represents one of the most ambitious trade agreements in recent history, creating a single market for goods and services across 54 African countries, with a combined GDP of over $3 trillion. For Nigeria, this framework offers immense opportunities to diversify beyond its traditional reliance on oil exports by tapping into new markets for agriculture, manufacturing, technology, and services. Through enhanced production capacity and better integration with regional value chains, Nigeria can expand its export base, creating pathways for growth in sectors like textiles, food processing, and pharmaceuticals.
To fully harness these opportunities, experts advise that Nigeria must invest in critical infrastructure, such as transport and logistics, which are essential for efficient trade facilitation under AfCFTA.
Strengthening port facilities, improving road networks, and developing rail links will not only reduce the cost of doing business but also ensure seamless movement of goods across borders, enhancing Nigeria’s attractiveness as a trade hub for the region. Furthermore, by fostering a conducive business environment and addressing regulatory bottlenecks, Nigeria can encourage foreign investment, enabling the country to benefit from both intra-African trade and global supply chains.
The task ahead requires not just superficial policy adjustments but a comprehensive overhaul of existing structures. It demands courageous reforms, visionary leadership, and an unwavering commitment to excellence. By addressing the fundamental obstacles that inhibit growth, Nigeria can begin to reposition itself for economic resurgence, ensuring that the promise of its independence is finally fulfilled. Only through such bold reorientation can the nation attain the dynamic, robust systems needed to propel it toward the global success it has long sought.
The fact is that commercial banks play a crucial role in driving Nigeria’s economic rebirth by providing financial services that support businesses, individuals, and the government. This is why Access Bank has taken a prominent role in driving Nigeria’s economic rebirth through strategic initiatives, partnerships, and financial inclusions aimed at enhancing the nation’s economic stability and growth.
Access Bank’s global presence has played a pivotal role in bolstering regional economic growth in Africa by expanding financial services, fostering cross-border trade, and driving investments. By establishing a wide network of subsidiaries and branches across key African markets, the bank has improved access to capital for businesses and individuals, thus stimulating entrepreneurship and economic activities in the region.
The bank’s robust digital banking infrastructure has also enhanced financial inclusion, bringing banking services to previously underserved populations. This has facilitated greater economic participation, especially for small and medium-sized enterprises (SMEs), which are crucial drivers of job creation and poverty alleviation in Africa.
Moreover, Access Bank’s involvement in infrastructure financing and public-private partnerships has supported major projects in sectors such as energy, transport, and telecommunications, contributing to sustainable development. By leveraging its international connections, the bank has attracted foreign investments, promoted trade links, and facilitated cross-border transactions, further integrating African economies into the global market.
This expansive footprint has allowed Access Bank to act as a bridge between African countries and global markets, promoting economic integration and regional growth through innovation, investments, and partnerships.
Access Bank has continued its impressive growth trend, both organically and by acquisition, rose to quickly become one of Nigeria’s leading corporate banks with a reputation for strong compliance, risk management and trade finance. With a total assets amounting to $28.8 billion, the bank operates through a network of more than 700 branches and service outlets, spanning 3 continents, 22 markets and 60 million customers.
Access Bank’s programmes
The bank has launched various programmes designed to support small and medium-sized enterprises (SMEs), which are vital for job creation and economic diversification. By providing tailored financial products, training, and access to markets, the bank helps SMEs scale up their operations. Programs like the W Initiative, targeting women entrepreneurs, Transact&Win promo, XtraWins, DiamondXtra are empowering business owners, customers with the necessary tools for growth.
In a bid to strengthen Nigeria’s financial sector, Access Bank has been at the forefront of digital banking innovation as it has invested in technology and platforms to promote financial inclusion, especially in underserved regions.
Recognising the importance of agriculture in Nigeria’s economy, Access Bank has been facilitating funding and investments in the agricultural sector through the Access Bank Agric Desk and partnerships with government initiatives like the Anchor Borrowers’ Programme, the bank supports farmers and agribusinesses in improving productivity, thereby contributing to food security and export revenue.
The bank has also played an active role in promoting public health and educational initiatives, both of which are essential for long-term economic development. During the COVID-19 pandemic, Access Bank worked with other stakeholders to support health infrastructure improvements. In addition, the bank’s investments in youth education and entrepreneurship training programs have long-term impacts on the labor force and the economy.
Hence, the bank continues to be a key player in shaping the nation’s financial landscape, enhancing productivity in vital sectors, and fostering an environment conducive to sustainable economic growth.
Its leadership in economic rebirth is not only reflective in financial services but also in its broad developmental impact across the country as reflected in the recent corporate customer forum which was held last month.
Highlights of the forum
The forum tagged “Nigeria’s Economic Rebirth: Hopes and Implications, served as a key platform for thought leadership and knowledge exchange, focused on the dynamic intersection of growth and innovation, leveraging technological advancements, sustainable practices and inclusive strategies to thrive in today’s rapidly evolving business landscape.
Speaking at the forum, the Coordinating Minister of the Economy and the Minister of Finance, Wale Edun, noted that although Nigeria’s economy grew by 3.19% in the second quarter (Q2) of 2024, the onus is on banks to play its own part in improving prosperity and securing Nigeria’s future.
Edun said, “We have challenged ourselves in the near future to provide Nigerians with near-single digit interest rates, 25-year mortgages, so that we can re-ignite the construction sector and ignite the opportunities for people to have houses.
The current administration has made a steadfast commitment to ensuring that the poor and vulnerable are not left behind, and the evidence, data, and reports at hand clearly demonstrate that our reforms are starting to bear fruit. The economy, after facing significant challenges, is beginning to show signs of recovery and positive transformation.
One of the critical pillars of this turnaround is our strategic focus on boosting domestic production. We have successfully positioned the country to produce all essential oil products locally, reducing reliance on imports and fostering self-sufficiency. Additionally, we are ramping up the production of raw materials within Nigeria, further strengthening our industrial base and creating new opportunities for growth.
Also sharing insights, Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said, “We must situate our policies – taxation, fiscal, monetary within the context of facilitating and stimulating economic activities on one hand and at the same time, ultimately improving the quality of lives for our people. Like I said, we need to do things differently but we need to make tough decisions because what we have done for decades did not work and will not work. In 2023 in the whole of Nigeria, we collected N1.53 trillion in personal income tax. In that same period, South Africa collected N50.5 trillion equivalent from personal income tax alone and even a smaller economy like Kenya collected N5.8 trillion. Revenue collection must improve as it is a means to an end. Reforms must facilitate shared prosperity”.
The Chief Executive Officer, Dangote Group, Aliko Dangote, who also doubles as a Businessman and Industrialist, noted that a country relying on imports equates to importing poverty and called on the government and banks to support the local manufacturing industries.
“What we need now is really making sure we support the local manufacturing industry. We can go out and keep begging for investments but what attracts foreign investments is domestic investments”, Dangote said.
For his part, Group Managing Director, Access Bank, Roosevelt Ogbonna, highlighted the importance of shifting perspectives towards optimism and opportunity in the face of Nigeria’s economic challenges.
“We understand that we are beginning to see some green shoots, a bit more stability and businesses are now changing their investment mindset into one of taking advantage of the opportunities that will accrue going into the future, so the idea was to get people’s mindset to change. If we keep talking about the challenges, we will never see the solutions or opportunities and so the idea now is how we can get the government, financial services industry, businesses to take advantage of these opportunities”.