The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, said the banks’ recapitalisation exercise is “making good progress”.
He hinted at this during a fireside chat at the European Business Chamber (Eurocham Nigeria) C-Level Forum in Lagos, moderated by the Chief Country Representative, Deutsche Bank Nigeria, Andreas Voss.
The update is coming; after about a month, he announced that eight banks have met the recapitalisation requirements.
READ ALSO: Pressure Mounts on Nigerian Tier-2 Banks as Mergers Loom
In a statement on Sunday, September 7, Cardoso reiterated that the recapitalisation exercise will bring about stronger institutions that can withstand shocks and ensure financial growth.
The recapitalisation, which mandates all banks to raise their capital, he noted, is specifically intended to fortify the financial system and guarantee that the financial institutions are capable of supporting a wider range of economic activities.
Pinnacle Daily reports that CBN had, in April 2024, commenced a compulsory recapitalisation exercise for all banks to bring about macroeconomic stability and fortify the banking sector.
READ ALSO: NDIC, CBN to Strengthen Financial System Stability
“We will protect the stability that has been re-established in the financial system with the utmost zeal,” Cardoso stated.
“Our primary objective is to maintain that stability while simultaneously addressing inflation and ensuring that the financial system is sufficiently resilient to facilitate corporate lending and investment.”
The CBN governor also fielded questions from other key areas, including headline inflation and the apex bank’s monetary policy tightening, which is seen as impacting investment decisions in the country.
According to Cardoso, there is a possibility that the current high interest rates will decrease in the future as inflation softens and as markets become more efficient in allocating capital.
“That is the environment in which stronger corporate lending and higher levels of investment will naturally follow,” the CBN governor said.
READ ALSO: Recapitalisation: GTCO Injects ₦365.9bn into GTBank
He stressed the need for technology-driven solutions to deepen access and address poverty in the country while also strengthening efforts to expand financial inclusion and fortify the fintech ecosystem.
On the country’s position in the global economy, he stated, “The urgency of addressing our own affairs is underscored by the ongoing geopolitical changes.”
Nigeria is a market that is not only large and appealing but also situated at the entrance to the broader continent and West Africa, which underscores the importance of maintaining banks’ financial stability.
Earlier at the event, the Eurocham President, Yann Gilbert, had remarked that the chamber is a conduit that links European businesses with Nigerian policymakers.
“Our members are profoundly dedicated to this nation. We aspire to establish enduring partnerships, generate employment opportunities, and invest,” he said.
The forum is focused on fostering engagement, dialogue, and solutions that enhance confidence and unleash opportunities between Nigeria and Europe.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
