Nigeria’s Financial Frontier: Dr. Kwairanga Unveils Opportunities Amidst Challenges in Korea
Dr. Umaru Kwairanga, Non-Executive Director of Jaiz Bank, took the audience on a journey through Nigeria’s financial industry’s rich history and dynamic growth.
From the establishment of foundational institutions like the Central Bank of Nigeria (CBN) in 1958 and the Nigerian Stock Exchange (NSE) in 1960, he traced the sector’s evolution into a diverse and complex system.
Dr Umaru Kwairanga stated this on Monday in Seoul Korea during the Korea-Africa Economic & Financial Cooperation as the leader of Nigerian Delegation of Directors Association of Nigeria BDAN.
Dr. Kwairanga highlighted the critical components of Nigeria’s financial landscape, including the stock market, bond market, money market, and banking industry.
He pointed out that these sectors form the backbone of Nigeria’s financial services, contributing significantly to the Nigerian Exchange Group’s N56 trillion market capitalization.
Dr Kwairanga said the banking sector, regulated by the CBN and supported by entities like AMCON and NDIC, plays a central role in stabilising the financial system and fostering competition and innovation.
He also noted the sector’s growth post-2004 consolidation, which has enabled banks to finance larger projects and expand their international footprint.
“A key development in recent years is the burgeoning digital banking and fintech ecosystem in Nigeria, which has made financial services more accessible to the masses. Fintech firms now make up over half of Nigeria’s financial service providers, propelling the country towards a cashless economy.
“Despite these strides, challenges such as regulatory inconsistencies and limited access to capital for SMEs remain. The banking sector also faces issues with non-performing loans and risk management practices.
Yet, Dr. Kwairanga sees these challenges as opportunities—especially for digital banking solutions and mobile money services to drive economic empowerment and development for the 28.9 million Nigerians still financially excluded.
He concluded by emphasising that Nigeria’s financial markets and banking sector not only face considerable challenges but also offer substantial opportunities for growth and innovation, making it an attractive destination for investment and financial sector innovation.
