The Group Managing Director/Chief Executive Officer of the United Bank for Africa (UBA) Group, Mr. Phillips Oduoza, has said that the perception that the Nigerian banking sector is over-regulated is not true, adding that the industry remains strong with improved regulatory oversight.
Oduoza said this in an interview with THISDAY yesterday in Kigali, Rwanda at the ongoing World Economic Forum (WEF) on Africa.
Oduoza, who will be stepping down as the bank CEO at the end of July this year, said: “I do not think that Nigerian banks are over-regulated. I think you need to look at other jurisdictions and look at the level of regulations we have. One of the most regulated environment is the United States. If anything at all, I think they are moderately regulated.
“So, I think the banking industry remains strong and governance is very strong compared with where we are coming from, risk management is very robust and the industry is very strong.”
Also yesterday, UBA signed a $100 million trade financing memorandum of understanding (MoU) with the Export-Import Bank of the United States (EXIM Bank) on the sidelines of the WEF on Africa.
Both institutions explained that the MoU would provide up to $100 million to finance the purchase of American goods and services. The Chairman and President of the EXIM Bank, Fred P. Hochberg, and Oduoza, signed the MOU, with the goal of expanding trade between the US and sub-Saharan Africa.
Both of them were joined by the Deputy Managing Director and Group Managing Director Designate, UBA, Mr. Uzoka Kennedy, as well as the Group Head, Financial Institutions and International Organisations, UBA, Sola Yomi-Ajayi, at the signing ceremony.
Shedding more light on the agreement, Oduoza while speaking with THISDAY said: “For us in Nigeria and for our customers across Africa, it means that they have a source of funding for their transactions, especially the medium to long-term funds which you don’t normally find in the market easily. It implies that once you are importing goods from the US, then facility is available for you to draw upon.
“For us in Nigeria, for those that are involved in manufacturing, it will also assist them to a very large extent. So, it is not a question of one having a good project, but there are no financing. So, it provides liquidity and financing and enables businesses to produce effectively.”
According to the UBA boss, once an SME operators meets the requirements, he or she would be able to access the fund.
Also, Hochberg said: “EXIM Bank is proud to build on its decade’s long commitment to financing American exports to sub-Saharan Africa.
“This memorandum signals to American exporters and African businesses alike that there are many more promising opportunities to work together, and EXIM stands ready to provide the financing needed to turn more of those opportunities into realities.”