The Central Bank of Nigeria (CBN) has unveiled plans for a fresh phase of banking recapitalization targeting Deposit Money Banks (DMBs).
During the 58th Annual Bankers’ Dinner hosted by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, Dr. Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), disclosed the initiative.
In response to the demands of the Nigerian economy, DMBs will be mandated to augment their capital reserves as part of the planned recapitalization.
Cardoso highlighted President Bola Ahmed Tinubu’s ambitious objective outlined in the Policy Advisory Council report to achieve a GDP of one trillion dollars by 2030. This vision includes clearly defined priority areas and strategies.
Emphasizing the crucial role of banks in realizing this goal for the nation’s economy by 2030, Cardoso stressed the necessity for their enhanced participation.
He articulated that the CBN envisions a significant developmental role for banks over the next seven years, making the demand for their recapitalization imperative.
Cardoso underscored that Nigeria’s pursuit of rapid and inclusive economic growth aligns with the objective, necessitating the imperative of the recapitalization drive.
“The administration has already commenced this journey through fiscal reforms, including the removal of petrol subsidies and the unification of the foreign exchange market rate.
“Considering the policy imperatives and the projected economic growth, it is crucial for us to evaluate the adequacy of our banking industry to serve the envisioned larger economy,” he said.
