Stiff Regulation, Compliance Cost May Affect Banking Sector – Elumelu

UBA Chairman Highlights Regulatory Burdens and Calls for Reforms to Unlock Banking Sector's Growth Potential

Tony Elumelu

Tony Elumelu, Chairman of the United Bank for Africa (UBA) Group, has highlighted that strict regulations and high compliance costs are currently limiting banks’ ability to contribute significantly to Nigeria’s Gross Domestic Product (GDP).

Elumelu made these remarks while delivering a keynote address on Tuesday at the 17th Annual Banking and Finance Conference organized by the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja. The conference focused on “Accelerated Economic Growth and Development: The State of Play and the Way Forward.”

He stated, “The sector employs millions, provides crucial financial support to countless businesses, and generates income for millions of shareholders. However, the sector faces challenges that impede its growth and innovation, including regulatory and high compliance costs.”

Elumelu also pointed out other areas that require government attention to foster growth. “Development is impossible without reliable access to electricity. Power is a fundamental resource that impacts every aspect of life—from hospitals to homes and businesses. Nigeria cannot industrialize, and our youth cannot be educated without ensuring our abundant natural resources are translated into plentiful, robust power for all,” he said.

He further emphasized the need to incentivize young people to drive economic growth. “We face a choice: either we offer our youth a future where opportunity is outside Nigeria, forcing our best and brightest to leave, to undertake perilous journeys that split families and destroy lives—or we create an environment for growth and innovation.”

In support of these views, Mr. Oliver Alawuba, Chairman of the Body of Banks’ CEOs and Group Managing Director of UBA, stated that the institute is committed to advancing the financial sector and the broader goals of national development.

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