The CBN took its reassurance on the recapitalisation exercise to global investors at a forum convened by the UK-Nigerian Chamber of Commerce
The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has reteriated that the bank will continue to collaborate with relevant financial institutions, the fiscal authorities and the National Assembly to ensure a successful recapitalisation exercise for deposit money banks in the country.
Mr. Cardoso made this pledge in London on Tuesday, June 25, 2024, while speaking to stakeholders on the impact of the recapitalization of Nigerian banks at the UK-Nigerian Chamber of Commerce, according to a statement from the apex yesterday.
The governor, who was represented by the deputy governor, financial systems stability of the bank, Mr. Phillip Ikeazor, emphasised the event’s significance and restated the CBN’s commitment to fostering stronger, healthier, and more resilient banks capable of withstanding economic shocks and supporting the government’s goal of achieving a GDP of US$1 trillion by 2030.
According to him, “the anticipated impact of the recapitalisation programme will include an increase in banks’ lending capacity, a boost in the volume of foreign direct investment (FDI), and an increase in foreign exchange liquidity”
“The exercise would also contribute to GDP growth, better risk management, improved credit ratings, a diversified ownership base, better governance and strategic decisions, and increased market volume and value, leading to a more vibrant equity market”.
“With the recapitalisation programme, our goal is to trigger the emergence of stronger, healthier and more resilient banks.”
He noted that several factors influenced the new minimum capital requirements, including macro economic conditions, stress test outcomes, and the need for improved risk management, adding that it will provide adequate protection of property rights and interests of minority shareholders.
“We will rigorously enforce our “fit and proper criteria” for prospective new shareholders, senior management, and board members of banks, and proactively monitor the integrity of financial statements, adequacy of financial resources, and fair valuation of banks’ post-merger balance sheets,” Cardoso assured.
He noted the significant opportunity it presents to engage investors, policymakers, and technocrats on the critical issue of bank recapitalisation in Nigeria.
Mr Cardoso explained that since his assumption of office in October 2023, his priorities at the CBN have included achieving monetary and price stability, maintaining a stable exchange rate, controlling inflation, and creating an enabling environment for businesses.
