Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), has announced plans to instruct banks to boost their capital base.
This declaration was made during the 58th annual bankers’ dinner and the culmination of the 60th anniversary celebration of the Chartered Institute of Bankers of Nigeria (CIBN).
Cardoso expressed concerns about the liquidity of Nigerian banks, stating that they may not be sufficiently liquid to support the $1 trillion economy envisioned by President Bola Tinubu in the near future.
Addressing the audience, Cardoso emphasized the importance of evaluating the adequacy of the banking industry in light of projected economic growth and policy imperatives.
He noted that while the current assessment indicates financial stability, it is crucial to consider whether Nigerian banks will possess adequate capital to meet the needs of a $1.0 trillion economy in the near future.
Cardoso stated, “Therefore, we must make difficult decisions regarding capital adequacy. As a first step, we will be directing banks to increase their capital.”