President Bola Tinubu has backed the Central Bank of Nigeria (CBN) on the plan to increase the capital base of commercial banks in the country.
Recall that the CBN Governor, Olayemi Cardoso, at the 58th Annual Bankers’ Dinner, said the apex bank will increase the capital base of the banks in the country.
The apex bank boss said Nigerian banks are not liquid enough to service the $1 trillion economy the Bola Tinubu administration aims for in the next seven years.
Speaking on Tuesday at the 40th Anniversary Celebration of The Guardian Newspapers in Lagos, President Tinubu backed the banking sector consolidation initiative of the apex bank.
The president, represented by his spokesman, Bayo Onanuga, stated that the CBN initiative would help the country grow the economy to new heights.
Tinubu said it has become important to consider the capital adequacy of Nigerian banks in light of the projected $1tn economy in eight years, adding that there would be a strong need to revisit the capital adequacy levels of banks.
He said, “On the economy, that is facing all of us, our ambition to attain the $1tn appears daunting but we believe that it is achievable with God on our side and our collective determination.
“This explains the reason the Vice President and I have been on the road trying to attract huge investments into various phases of our economy: agriculture, oil and gas and others.
“To arrive at the $1 trillion economy, we must address the capital adequacy of our banks that will prepare the fuel for this journey.”