Nigeria CBN Governor Announces Capital Boost for Banks Amidst President Tinubu's $1tn Economy Ambition

In a significant address at the 58th Annual Dinner of the Chartered Institute of Bankers of Nigeria, CBN Governor Dr. Olayemi Cardoso revealed plans to direct Deposit Money Banks to bolster their capital base.

The move is a response to President Bola Tinubu's ambitious projection of a $1tn economy within the next seven years. Dr. Cardoso emphasized the need for Nigerian banks to align their capital strength with the demands of this envisioned larger economy.

He attributed the recent negative perception of the apex bank to issues like corporate governance failure, diminished independence, and deviation from its core mandate. Dr. Cardoso also shed light on the quasi-fiscal policies under his predecessor, Godwin Emefiele, which injected over N10tn into the economy.

Despite acknowledging the resilience of Nigeria's financial sector, Dr. Cardoso stressed the importance of fortifying the industry for future challenges

The address also touched on forex dynamics, inflationary pressures, and the ongoing initiatives since Dr. Cardoso assumed office. The CBN Governor reassured stakeholders of his commitment to addressing institutional deficiencies and implementing measures for economic stability.