The Governor, Central Bank of Nigeria (CBN) Olayemi Cardoso on Wednesday reaffirmed the bank’s commitment to supporting the federal government’s target of achieving a $1tn economy, through bank recapitalization.
Cardoso who was represented by the bank’s Acting Director of Financial Policy and Regulations, Mr John Onoja disclosed this at the Afrinvest 2024 Banking Sector Report Launch.
The report focuses on the banking sector recapitalisation, which requires all commercial, merchant, and non-interest banks to increase their paid-up capital to suitable levels.
Speaking on achieving the president’s economic ambition, Cardoso said the apex bank was relentless towards creating an enabling environment for businesses and individuals.
He noted that it was pertinent to tackle institutional deficiencies, restore corporate governance, strengthen regulations, and implement prudential guidelines and policies.
“We are glad that the present administration has set this target, and we are committed to supporting it,” Cardoso said.
“This exercise will enhance the capacity of banks to serve the larger economy, increase lending capacity, attract foreign investments, improve foreign exchange liquidity, contribute to GDP growth, and promote better risk management and credit ratings” he noted
Also at the event, the Group Managing Director of Afrinvest Ike Chioke highlighted the need for a comprehensive approach to achieving a $1tn economy.
“The macroeconomic environment is challenging, with a potential national strike looming, however, the data is available to run the economy effectively, but politicians must pay attention to it and have the discipline to be humble,” he said.
Chioke emphasised that this exercise will enhance the capacity of banks to serve the larger economy, increase lending capacity, attract foreign investments, and promote better risk management while observing that the banking sector alone cannot drive economic growth.