COMFORT EKELEME, Business Editor
The Central Bank of Nigeria (CBN) has stated that the ongoing bank recapitalisation exercise is a crucial step towards achieving the country’s ambitious target of becoming a $1 trillion economy.
This was disclosed by the Deputy Governor, Corporate Services Directorate of the CBN, Ms. Emem Usoro, on Monday during the opening ceremony of the 36th Finance Correspondents Association of Nigeria (FICAN) and Business Editors’ Seminar in Abuja.
The seminar, organised by the apex bank, was themed “Banking Recapitalisation Towards a $1 Trillion Economy.”
According to Ms. Usoro, the bank recapitalisation initiative is necessary to strengthen Nigeria’s banking sector, enhance financial intermediation, and support long-term economic growth.
She said ,“As we work towards building a $1 trillion economy, we must consider the recapitalisation of our banks to be able to fund, finance, and power the economy and favourably compete with its peers globally,” she said.
According to her, the global financial landscape has evolved significantly, even before the emergence of the Donald Trump administration in the United States, citing increased globalisation and capital flows as critical shifts that countries like Nigeria must respond to with adequate policy actions.
Usoro noted that, “Countries and their financial systems must be prepared to utilise opportunities created by financial globalisation through appropriate policy support and actions.
Highlighting previous reforms, Usoro recalled the 2004 consolidation exercise which raised the minimum capital base for banks to ₦25 billion, leading to a reduction in the number of banks from 89 to 25.
She explained that the current recapitalisation drive, announced by the CBN in 2024, revised the minimum capital requirements significantly, requiring Commercial banks with international authorisation to now hold a minimum capital base of ₦500 billion.
“Those with national licences are to have ₦200 billion, while regional banks are to meet a ₦50 billion threshold. Merchant banks will also require ₦50 billion.
For non-interest banks, the minimum capital requirement is ₦20 billion for national authorisation and ₦10 billion for regional”.
Nigeria’s economy is currently valued at approximately $250 billion.
According to the Deputy Governor, achieving the $1 trillion target will demand a combination of strong banking institutions, strategic planning, clear policy direction, and unwavering stakeholder collaboration.
“The push for the capitalisation of banks will no doubt improve the strength and health of the financial system, deepen financial intermediation, and promote healthier competition that will strengthen our payment system,” she asserted.
Usoro emphasised that discussions from the seminar, bringing together regulators, industry players, and the media would help shape effective strategies towards achieving the national goal.
“Building a $1 trillion economy is not an easy task. It requires careful planning, robust and clear policy direction, dutiful implementation, and a wide commitment to stakeholders that will galvanise the various sectors of the economy,” she concluded.
