JUST IN: CBN Tells Banks to Hasten Recapitalisation Efforts

In a recent directive, the Central Bank of Nigeria (CBN) has called upon deposit money banks across the nation to accelerate their efforts to bolster their capital base beyond the current N25 billion threshold.

CBN Governor Olayemi Cardoso made this announcement during the apex bank’s 294th Monetary Policy Committee (MPC) meeting held on Tuesday in Abuja. The MPC also disclosed an increase in the interest rate from 22.75% to 24.75%.

Cardoso emphasized the need for proactive measures, highlighting the stability of the banking sector while urging banks to expedite their recapitalization initiatives to mitigate potential risks in an increasingly globalized environment.

“The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound and stable,” stated Cardoso. “The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-prudential guidelines.”

This call for action echoes Cardoso’s previous remarks made in November, shortly after assuming office, where he underscored the necessity for banks to augment their capital base to support President Bola Tinubu’s aspiration for a $1 trillion economy.

The last adjustment to the capital base requirement occurred in 2005 under the leadership of Charles Soludo, the current Governor of Anambra State, when the threshold was raised from N2 billion to N25 billion.