The Central Bank of Nigeria say it will direct banks to shore up capital base to meet up with the projected one trillion dollar economy.
The Governor CBN Olayemi Cardoso at the 2023 Bankers Dinner In Lagos Said Nigeria’s financial sector has demonstrated resilience in 2023 with key indications of financial soundness largely meeting regulatory benchmarks adding that
the banks don’t have the sufficient capital relative to the financial system’s needs in servicing a one trillion-dollar economy in the near future.
This is coming more than a decade after CBN under Prof Charles Soludo directed banks to raise their capital base to 25 Billion Naira.
Cardoso added that CBN will discontinue direct quasi-fiscal interventionist activities that pumped over ten trillion naira in the economy and instead utilize orthodox monetary policy tools for implementing monetary policy.
The CBN Governor also said recent developments in the payment services landscape have raised concerns regarding the use of technology and existing licensing and regulatory framework.
Looking ahead, the CBN projected a growth rate of two point three six percent in the third quarter of 2023, with an anticipated increase to three point nine seven percent in the fourth quarter as various reforms take effect.
(Editor: Amaech Anakwue)