Access, Zenith, UBA, and Others Must Boost Capital Base Under New CBN Rule.
The Central Bank of Nigeria (CBN) is set to spearhead a surge in the capital base of Nigerian banks, aiming to boost it from the current N25 billion threshold.
Governor Olayemi Michael Cardoso announced this move, citing the necessity to align the nation with its ambitious target of achieving a $1 trillion Gross Domestic Product (GDP). This declaration came during the 58th Annual Bankers Dinner hosted by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos.
Cardoso emphasized the insufficiency of the current bank capitalization in supporting the GDP expansion initiatives under President Tinubu’s administration. Notably, the last recapitalization in 2004 had escalated banks’ capital base from N2 billion to the existing N25 billion mark. However, analysts have pointed out that this amount no longer meets the demands of present economic realities.
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According to Cardoso’s statement reported by The Nation, sustaining inclusive economic growth remains imperative for reaching the set target. He highlighted the government’s commencement of this journey through vital fiscal reforms, such as eliminating petrol subsidies and unifying the foreign exchange market rate.
Acknowledging the resilient performance of the financial sector despite global and domestic macroeconomic challenges, Cardoso stressed the need for further fortification against potential future adversities. He underlined the necessity for industry-wide strengthening to endure forthcoming economic trials.
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