CBN will increase capital base of banks, says Cardoso

Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN), says the financial regulator will direct banks to increase their capital base.

Cardoso made this known at the 58th annual bankers’ dinner and grand finale of the 60th anniversary of the Chartered Institute of Bankers of Nigeria (CIBN).

He said Nigerian banks are not liquid enough to service the $1 trillion economy President Bola Tinubu is aiming for in the near future.

“Esteemed guests, considering the policy imperatives and the projected economic growth, it is crucial for us to evaluate the adequacy of our banking industry to serve the envisioned larger economy,” Cardoso said.

“It is not just about the stability of the financial system in the present moment, as we have already established that the current assessment shows stability.

“However, we need to ask ourselves: Will Nigerian banks have sufficient capital relative to the financial system’s needs in servicing a $1.0 trillion economy in the near future? In my opinion, the answer is “No!” unless we take action.

“Therefore, we must make difficult decisions regarding capital adequacy. As a first step, we will be directing banks to increase their capital.”