CBN Tasks Banks to Expedite Action on Recapitalisation 

The Central Bank of Nigeria (CBN) has directed commrrcial banks to expedite action to raise their capital base from the current ₦25bn.

Olayemi Cardoso, the CBN Governor, gave the directive on Tuesday during the apex bank’s Monetary Policy Committee (MPC) meeting in Abuja, Nigeria.

While reaffirming the stability of deposit money banks, Cardoso said to guard against risk, commercial banks in Nigeria should expedite their recapitalisation efforts.

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

He added: “The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

Cardoso had in November, shortly after he assumed office, stated that commercial banks in the country would be directed to raise their capital base to service the ambitious $1 trillion economy target of President Bola Tinubu administration.

The CBN, last increased capital base for banks in 2005, from N2billion to N25 billion during the tenure of Charles Soludo as Governor.