The Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, announced on Friday that the apex bank will instruct Deposit Money Banks to bolster their capital bases in preparation for the projected $1tn economy envisioned by President Bola Tinubu. Speaking at the 58th Annual Dinner of the Chartered Institute of Bankers of Nigeria in Lagos, Cardoso emphasized the need for Nigerian banks to assess their adequacy in servicing a larger economy.
Cardoso attributed recent negative perceptions of the CBN to corporate governance failures, diminished independence, deviation from core mandates, inefficient forex rules, and ventures into development financing. Despite challenges, he expressed optimism that recent policy measures, including the removal of the petrol subsidy and adoption of a floating exchange rate, would positively impact the economy in the medium term.
The CBN governor acknowledged the resilience of Nigeria’s financial sector in 2023 but emphasized the need for further strengthening and enhancing resilience to future challenges. He highlighted the widening gap between official and parallel market rates caused by the previous forex ban on 43 items.
Reflecting on his predecessor’s quasi-fiscal policies, Cardoso noted that over N10tn was injected into the economy through intervention programs. He acknowledged the challenges faced by the CBN in recent years, including straying from core mandates and engaging in activities beyond its expertise.
Assuring corrective measures under his leadership, Cardoso pledged to address institutional deficiencies, restore corporate governance, strengthen regulations, and implement prudent policies. He promised investors and the business community significant stability in the short-to-medium term.
The President/Chairman-of-Council at the CIBN, Ken Opara, welcomed the initiatives from the CBN under Cardoso’s leadership but acknowledged that there was still much to do. He stressed the importance of continued focus on reforms and incentives to boost non-oil export revenue and attract foreign investment.
Representing Lagos Governor Babajide Sanwo-Olu, Commissioner of Finance Abayomi Oluyomi expressed confidence in the positive impacts of the monetary and fiscal policies of the new administration on Nigeria’s economic indices and the living conditions of its people.
