Cardoso Speaks On CBN Increasing Capital Base Of Banks

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said the apex bank will increase the capital base of commercial banks in the country.

Cardoso made this known on Friday at the 58th Annual Bankers’ Dinner and grand finale of the 60th anniversary of the Chartered Institute of Bankers of Nigeria (CIBN).

The apex bank boss said Nigerian banks are not liquid enough to service the $1 trillion economy President Bola Tinubu is aiming for in the near future.

He said: “Esteemed guests, considering the policy imperatives and the projected economic growth, it is crucial for us to evaluate the adequacy of our banking industry to serve the envisioned larger economy.

“It is not just about the stability of the financial system in the present moment, as we have already established that the current assessment shows stability.

“However, we need to ask ourselves: Will Nigerian banks have sufficient capital relative to the financial system’s needs in servicing a $1.0 trillion economy in the near future? In my opinion, the answer is “No!” unless we take action.

“Therefore, we must make difficult decisions regarding capital adequacy. As a first step, we will be directing banks to increase their capital.”

Naija News reports that in 2023, some Nigerian banks have been raising funds to increase their capital base and also requesting approval from shareholders for fundraising.