Abuja: The Central Bank of Nigeria (CBN) has emphasized the importance of recapitalising Nigerian banks to achieve the ambitious goal of a one-trillion-dollar economy. This was stated by CBN’s Deputy Governor, Corporate Services, Emem Usoro, during the 36th edition of the Finance Correspondents Association of Nigeria (FICAN) seminar held in Abuja.
According to News Agency of Nigeria, Usoro’s address was delivered by Mrs. Hakama Sidi-Ali, the Acting Director of the Corporate Communications Department at CBN. She highlighted the evolving nature of the global financial system and the impact of globalisation on financial flows, stressing the need for countries, including Nigeria, to be prepared to harness the opportunities presented by financial globalisation through effective policy support and actions.
Usoro pointed out that the Nigerian banking system has undergone significant reforms, including the notable 2004 consolidation and recapitalisation exercise. This exercise, which mandated a minimum capital base of N25 billion for banks, reduced the number of banks in Nigeria from 89 to 25. She argued that as Nigeria aims to build a one-trillion-dollar economy, bank recapitalisation is essential to finance the economy and remain competitive on a global scale.
She emphasized the necessity for strong, resilient, and stable banks to facilitate financial intermediation, which is crucial for economic growth. Usoro noted that achieving a one-trillion-dollar economy is a complex task that requires careful planning, robust policy direction, and committed implementation by various stakeholders across different sectors of the economy.
Currently, Nigeria’s economy is valued at approximately 25 billion dollars. Usoro concluded by stressing that achieving the trillion-dollar economy goal requires concerted efforts from all sectors to ensure success.