“Bank Credit is Not a Gift,” UBA MD Oliver Alawuba Cautions Nigerians
- Oliver Alawuba warned that bank credit should not be seen as a gift or grant and must be repaid responsibly
- He said bank lending has grown to N46.7 trillion, reaching over 10 million Nigerians, reflecting improving confidence
- CIBN President Pius Olanrewaju highlighted the sector’s resilience and announced a Human Capital Retention Fund to address the impact of “Japa” on bank staffing
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, tech and macroeconomic trends in Nigeria.
The Chairman of the Committee of Banks’ Chief Executive Officers and Managing Director of United Bank of Africa (UBA), Oliver Alawuba, has cautioned Nigerians against treating loans as a gift or free money.
Alawuba, who gave the warning during the Chartered Institute of Bankers of Nigeria (CIBN) 60th Anniversary Dinner held in Lagos, advised Nigerians to approach bank loans and repayment responsibly.
Speaking at the event, he said banks remain committed to lending for productive purposes, but borrowers must understand that credit comes with obligations.
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He said:
“Bank credit is not a gift. Bank credit is not a grant. It is not to fund lifestyle. Credit is a trust between the bank and the customer. Banks lend to grow the economy, and the money must return so it can be lent again.”
He warned that irresponsible borrowing slows economic progress and emphasised the need for strong risk management and timely repayment to maintain a healthy financial system.
Renewed confidence should be sustained
Alawuba reflected on Nigeria’s recent economic challenges, including the sharp depreciation of the naira and declining investor confidence that characterised some of the country’s most difficult financial periods. He noted that the uncertainty of those years had impacted markets and institutions across the board.
He, however, noted that conditions have begun to improve, with bank lending now standing at N46.7 trillion and reaching 10.4 million Nigerians. He said the progress recorded demonstrates renewed investors’ confidence and it should be sustained.
Alawuba attributed the renewed confidence in the banking sector to ongoing monetary and fiscal reforms. He also said global credit rating agencies were beginning to take a more favourable view of Nigeria’s economic direction.
“You have restored confidence in the naira,” he told policymakers and regulators present at the dinner, adding that recent achievements were the result of close coordination between the fiscal and monetary authorities.
He reiterated that the federal government’s ambition to build a $1 trillion economy is achievable but will require stronger structural reforms, improved productivity, and consistent growth across key sectors.
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The banks’ CEOs chair added that the industry would continue to collaborate with government institutions to support ongoing reforms and help achieve a full economic turnaround.
Professor Pius Olanrewaju, President and Chairman of Council of the CIBN, in his address, said despite global and domestic pressures, Nigerian banks had remained resilient and had continued to strengthen their support for the real sector.
Olanrewaju noted the rising impact of the “Japa syndrome” on the banking workforce and revealed that the institute had introduced a Human Capital Retention Fund to train new entrants and upskill existing personnel.
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Nigeria attracts more foreign capital
Legit.ng earlier reported that Nigeria has recorded a strong rebound in foreign investor confidence, with capital inflows reaching $20.98 billion between January and October 2025.
According to the Governor of the Central Bank of Nigeria, Olayemi Cardoso, foreign capital inflow increased by 70% when compared to total inflows recorded in 2024.
He said the trend shows investors’ renewed trust and confidence in the country’s monetary policy direction and ongoing economic reforms.
Source: Legit.ng
