The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has expressed the bank’s ongoing commitment to working closely with relevant financial institutions, fiscal authorities, and the National Assembly to ensure the success of the recapitalisation exercise. This includes safeguarding property rights and the interests of minority shareholders.
Speaking at the UK-Nigerian Chamber of Commerce in London on Tuesday about “The Impact of the Recapitalization of Nigerian Banks,” Cardoso, represented by the Bank’s Deputy Governor for Financial Systems Stability, Mr. Phillip Ikeazor, highlighted the importance of the event and reaffirmed the CBN’s dedication to developing stronger, more resilient banks. These banks will be capable of withstanding economic challenges and supporting the Government’s objective of achieving a GDP of US$1 trillion by 2030.
Cardoso outlined several expected outcomes from the recapitalisation programme, including enhanced lending capacity for banks, increased foreign direct investment (FDI), and improved foreign exchange liquidity. He also mentioned the programme’s potential to boost GDP growth, enhance risk management, improve credit ratings, diversify ownership, strengthen governance and strategic decision-making, and increase market volume and value, leading to a more dynamic equity market.
“With the recapitalisation programme, our goal is to foster the emergence of stronger, healthier, and more resilient banks,” he said.
Cardoso noted that the new minimum capital requirements were influenced by several factors, such as macroeconomic conditions, stress test results, and the need for better risk management.
“We will rigorously enforce our ‘fit and proper criteria’ for prospective new shareholders, senior management, and board members of banks, and proactively monitor the integrity of financial statements, adequacy of financial resources, and fair valuation of banks’ post-merger balance sheets,” Cardoso assured.
He emphasized the significant opportunity to engage investors, policymakers, and technocrats on the critical issue of bank recapitalisation in Nigeria.
Since assuming office in October 2023, Mr. Cardoso has focused on achieving monetary and price stability, maintaining a stable exchange rate, controlling inflation, and creating an enabling environment for businesses.
, Mr. Olayemi Cardoso, has expressed the bank's ongoing commitment to working closely with relevant financial){kind=link}