The Central Bank of Nigeria (CBN) has affirmed the strong preparedness of Nigerian banks for the ongoing recapitalisation exercise, highlighting their increasing global credibility.
Speaking on Monday in Abuja at the Finance Correspondents and Business Editors Association of Nigeria (FICAN) Seminar, themed “Playing the Global Game: Banking Recapitalisation Towards a One-Trillion Dollar Economy,” the Director of Banking Supervision Department at the CBN, Dr. Olubukola Akinwumi, reassured the public of the banking sector’s resilience.
Responding to questions, Dr. Akinwumi stated that the ability of local banks to navigate challenges, including exchange rate fluctuations, has boosted investor confidence and enhanced their global standing. He confirmed that progress was being made towards the recapitalisation deadline but refrained from disclosing individual banks’ fundraising progress.
Dr. Akinwumi emphasized the alignment of the recapitalisation drive with the Federal Government’s focus on key sectors such as agriculture, infrastructure, education, and health, noting that Nigerian banks are well-positioned to support these investments. He reiterated the CBN’s commitment to implementing policies that foster investment within the banking sector, aiming for consolidation and innovation.
Furthermore, Dr. Akinwumi underscored the CBN’s dedication to combating illicit financial flows, assuring that unverified funds would not be admitted into the banking system. He stated that thorough verification processes for all incoming funds would be implemented to ensure transparency and security. The CBN has provided flexible avenues for banks to raise capital, including initial public offerings, rights issues, private placements, mergers, and acquisitions.
Also commenting on the recapitalisation, Mr. Oliver Alawuba, Group Managing Director of United Bank for Africa (UBA), emphasized the need for national collaboration to support the growth of the banking sector. He called for a value reorientation towards patronizing Nigerian goods and services. Mr. Alawuba highlighted the increasing collaboration between Nigerian banks and foreign financial institutions, noting the growing influence of Nigerian and other African banks across the continent. He expressed optimism that all local banks would meet the CBN’s recapitalisation deadline but suggested that some flexibility be considered for institutions requiring slight extensions
Nigerian Banks Prepared for Recapitalisation, Gaining Global Recognition – CBN Assures
