Rapid Changes In Tech Sector Means FinTech Companies Are An Inescapable Part Of Banking Landscape
Channel: Prof. Yemi Osinbajo
Date: 15/09/2021

REMARKS BY HIS EXCELLENCY, PROF. YEMI OSINBAJO, SAN, VICE PRESIDENT, FEDERAL REPUBLIC OF NIGERIA, AT THE 14TH BANKING AND FINANCE CONFERENCE, HELD AT THE TRANSCORP HILTON HOTEL ABUJA, ON THE 14TH OF SEPTEMBER 2021

 

PROTOCOLS

 

It is such a great pleasure to participate at another Bankers’ Conference, the 14th. And I must say that I really like Bankers’ Conferences, they are always so encouraging. Bankers always look good no matter how things are looking, sharp business suits, ladies and gentlemen bankers. They just look recession-proof.

 

But I must say that your confidence and optimism is a patriotic act, it is not just a reflection of the fact that yes there is plenty of opportunity and plenty to do, but also a patriotic act. Talking of patriotism, one of the most patriotic Nigerian I know is my dear younger brother, the CBN, Governor Emefiele. (Tells a short story of Emefiele’s act of patriotism).

 

So, I am glad to be here, of course, everyone here will agree that the past few years have seen some of the most economic shocks in our history. We have had the misfortune of experiencing two recessions in about four and half years due to external shocks notably from the oil sector and now from the health sector with COVID-19.

 

While we must commend ourselves for quickly exiting both recessions and even seeing a 5.01% GDP growth bounce back in the last quarter, we have experienced a deepening of poverty and unemployment. If there is any issue that must be front and center of policy and action today, it must be lifting millions out of poverty, creating jobs and opportunities for our young, and restless population. Every macroeconomic and government policy must be subjected to the question, what will its impact be on poverty and jobs?

 

This is why the theme of this conference is particularly important, “Economic Recovery, Inclusion and Transformation, the Role of Banking and Finance.”

 

I will in the next few minutes, hopefully, challenge our banking and financial sector to step up to the plate and play its part. And this sector has a large part to play.

 

First, because we know that countries with better developed financial systems experience faster economic growth and as such, are better able to engineer accelerated exit out of poverty for many. Second, according to a McKinsey Report, despite COVID, Africa’s banking sector is fast-growing and nearly twice as profitable as the global average.

 

To be fair, over the years, the banking and finance industry in Nigeria has supported national economic development in so many ways. It has provided good-paying jobs to a large number of Nigerians and contributed to growth in economic activities through path-breaking innovations. And as we have heard from the President and also from the CBN Governor, several innovative interventions have greatly helped in ensuring that we are able to sustain some of the progress that was made through the years and even to make some appreciable progress despite the challenges of COVID-19 and other external shocks. But clearly, we are far away from where we ought to be.

 

So what else needs to be done?

 

I believe that it is time for the banking sector to take on some of the transformative big-ticket items that would fundamentally transform our economy. Such matters for example, as consumer finance but housing finance in particular.

 

The link between housing, housing finance, and economic development is already well established. (And there is an interesting AfDB survey that provides great material on this point and I have used it quite extensively).

 

“The housing sector may support poverty reduction and inclusive growth in two general ways. First, housing construction contributes to economic output, creates employment, and generates a demand for materials and related services. Second, improved housing raises the standard of living of occupants. That study (AfDB survey) says for example that the benefits of housing for individuals accrue in large part through better health and sanitation, and of course, this improves the overall human capacity of our citizens who are able to own these houses.

 
 
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Oluyemi Oluleke “Yemi” Osinbajo is a Nigerian lawyer and politician who is the current Vice President of Nigeria, in office since 29 May 2015.

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