Banks Recapitalisation Crucial To Achieving One Trillion Dollar Economy Target -CBN
By Sunday Etuka, Abuja
The Central Bank of Nigeria (CBN) has underscored the imperativeness of the ongoing banking sector recapitalisation to building a One Trillion Dollar Economy.
CBN Deputy Governor, Corporate Services, Ms Emem Usoro stated this on Monday, while speaking at the Opening of the 36th Seminar for Finance Correspondents and Business Editors, holding in Abuja, with the theme: “Playing the Global Game: Banking Recapitalization Towards a One-Trillion Dollar Economy.”
Ms Usoro noted that building a one trillion-dollar economy is not an easy task, as it requires careful planning, robust and clear policy direction, dutiful implementation, and averred commitment from stakeholders that would galvanise the various sectors of the economy.
“As we work towards building a One-Trillion Dollar Economy, we must consider the recapitalisation of our banks to be able to fund, finance and power the economy and favourably compete globally with its peers in other climes.
“We should particularly pay significant attention to bank recapitalisation to ensure that our banks are strong, resilient and stable enough to carry out financial intermediation, and the much-needed financing of development projects and programmes,” she added.
Represented by the Ag. Director, Corporate Communications Department, CBN, Mrs Hakama Sidi Ali, the Deputy Governor affirmed that the nation’s economy is valued at approximately $250billion, therefore, as it aspires to build a 1 trillion-dollar economy, all hands must be on deck.
She stated that the global financial system and architecture have assumed a new dimension even before the new administration of Donald Trump in the United States of America.
Noting that globalisation has broken the limits of financial flows, and investors have inadvertently taken full advantage of the opportunities.
However, she said, countries and their financial systems must be prepared and ready to utilise opportunities created by financial globalisation through appropriate policy support and actions.
“As you are aware, the Nigerian banking system has also undergone reforms, including bank recapitalisation and consolidation exercises.
“The 2004 banking sector consolidation and recapitalisation exercise, which set a limit of N25 billion minimum capital base for banks, brought the Nigerian banks from 89 to 25, was a noble idea that the Central Bank of Nigeria implemented in line with emerging developments at that time.”
She expressed optimism that the push for a recapitalisation of banks would no doubt improve the strength and health of the financial system, deepen financial intermediation and promote healthier competition that would strengthen the nation’s payment system.
She said it is her sincere expectation that at the end of deliberations at the seminar, participants would better appreciate the rationale and ideas behind the goal of attaining a one trillion-dollar economy and its operational mechanisms.
Earlier, in her Welcome Remarks, the Ag. Director, Corporate Communications, Mrs Hakama Sidi Ali said, the FICAN Seminar, which is a well-thought-out initiative of the CBN, was established with a clear purpose to foster a healthy and constructive working relationship between the Bank and the media.
Mrs Sidi Ali who was represented by the Head, Communication Management and Strategy Division of the CBN, Ibrahim Abbas, said at its core, the objective of the initiative was to educate and enhance the capacity of finance correspondents and business editors, enabling them to accurately interpret and report on contemporary financial and economic policy issues, as well as the Bank’s activities in alignment with its overarching mandate.
“This forum has equally served as a valuable channel for receiving periodic feedback from the Fourth Estate of the Realm,” she said.
