The Governor of the Central Bank of Nigeria, Dr Olayemi Cardoso, announced on Friday that the apex bank will urge Nigerian banks to boost their capital base in preparation for servicing the projected $1 trillion economy outlined by President Bola Tinubu.
Speaking at the 58th Annual Dinner of the Chartered Institute of Bankers of Nigeria in Lagos, Dr Cardoso emphasized that the removal of the petrol subsidy, adoption of a floating exchange rate, and other government policies are anticipated to have positive effects on the economy in the medium term.
These measures aim to enhance investor confidence, attract capital inflow, stimulate domestic investors, and improve external reserves.
Despite acknowledging the financial sector’s resilience in 2023, Dr Cardoso stressed the need for further strengthening and enhancing resilience to future challenges.
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With President Tinubu’s ambitious goal of achieving a GDP of $1 trillion over the next seven years, Dr Cardoso posed a critical question about the adequacy of Nigerian banks to serve the envisioned larger economy.
He stated, “Can Nigerian banks have sufficient capital relative to the finance system needs in servicing a $1 trillion economy in the near future? In my opinion, the answer is no, unless we take action. As a first step, the Central Bank will be directing banks to increase their capital.”
In his welcome address, the President/Chairman of the council, CIBN, Ken Opara, acknowledged initiatives from the CBN and stressed the importance of continuing reforms to boost non-oil export revenue and attract diaspora and foreign portfolio investment.
The Vice President, Senator Kashim Shettima, represented by Mrs Rukayat El-Rufai, and Governor Babajide Sanwo-Olu, represented by Abayomi Oluyomi, commended the positive impacts of monetary and fiscal policies under the renewed hope agenda.
The Chairman of the Body of Bank CEOs, Ebenezer Onyeagwu, highlighted the industry’s strength, particularly in addressing the issue of FX forwards.
The minister of Finance and coordinating minister of the economy, Wale Edun, praised the thriving and relatively healthy state of the industry, emphasizing the need to stay the course despite challenges.
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