By Mike Abbah
The Deputy Governor, Corporate Services, Central Bank of Nigeria (CBN), Emem Usoro, has said the bank recapitalisation exercise being implemented by the apex bank is a critical step towards achieving Nigeria’s ambition of building a $1 trillion economy.
Usoro said this at the opening session of the 36th edition of the Finance Correspondents Association of Nigeria (FICAN) and Business Editors seminar which opened on Monday in Abuja.
Usoro, who was represented by the Acting Director, Corporate Communications, Mrs Hakama Sidi-Ali, said the global financial system has assumed a new dimension hence the need for an appropriate policy shift.
Her words: “As you may know, the global financial system and architecture have assumed a new dimension even before the new administration of Donald Trump in the United States of America.
“Globalisation has broken the limits of financial flows, and investors have inadvertently taken full advantage of the opportunities.
“However, countries and their financial systems must be prepared and ready to utilise opportunities created by financial globalisation through appropriate policy support and actions.
“As we work towards building a $1 trillion economy, we must consider the recapitalisation of our banks to be able to fund, finance, and power the economy and favourably compete with its peers globally.
“We should particularly pay significant attention to bank recapitalisation to ensure that our banks are strong, resilient, and stable enough to carry out financial intermediation and the much-needed financing of development projects and programmes.various sectors of the economy.”
Usoro pointed out that discussions at the seminar, which include regulatory, industry, and media perspectives, are crucial in charting the way forward.
“As we aspire to build a $1tn economy, all hands must be on deck to achieve this. This gathering is essential to bring to the fore the bank’s effort and policy direction.
“The push for the capitalisation of banks will no doubt improve the strength and health of the financial system, deepen financial intermediation, and promote healthier competition that will strengthen our payment system.
“Therefore, it is my sincere expectation that at the end of your deliberation at this seminar, participants will better appreciate the rationale and ideas behind the goal of attaining a one trillion economy and its operational mechanism.”
It could be recalled that earlier in 2024, the CBN announced an upward review of Nigeria’s minimum capital requirements for commercial, merchant, and non-interest banks.
The minimum capital base for banks with international authorisation was increased to N500bn.
The minimum capital base for commercial banks holding national authorisation is N200bn, and for those with regional authorisation, it is N50bn. Merchant banks will also require a minimum capital requirement of N50bn.
Similarly, non-interest banks holding national and regional authorisations must adhere to new minimum requirements of N20bn and N10bn, respectively.
Currently, Nigeria’s economy is valued at around $250 billion.
According to Usoro, achieving the $1 trillion target will require not only strong banks but also careful planning, robust policy direction, dutiful implementation, and broad stakeholder commitment across all sectors.
The two-day event has as its theme, “Banking recapitalisation towards a $1 trillion economy.”
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