The governor of the Central Bank of Nigeria, CBN, Dr. Yemi Cardoso has recalled how the recapitalisation policy of the then governor of the apex bank, Charles Soludo averted the extinction of banks in Nigeria.
The CBN governor stated this on the heels of his call on the importance of banks increasing their capital base while fielding questions as a panelist at the 2023 Nigeria Sustainability Summit, themed: “Crisis-Resilient and New Nigerian Economy,” held yesterday in Lagos.
Soludo announced in July 2004 that the minimum capital requirement for banks would rise to N25 billion from the then minimum of N2bn by the end of 2005.
Dr. Cardoso who was represented by the apex bank’s director, financial policy and regulation, Haruna Mustapha stressed that banks increasing their capital base will help to cushion and absorb unexpected losses.
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“In the face of macroeconomics that we currently face, we can all relate to what is happening now, again tightening it with the traditional function of capital cushioning, unexpected losses and also to support the aspirations of the current government to build a 1 trillion dollar economy and by the way the one that is rooted in sustainable principles. What do we do? There is a need to take a second look at the existing capital regime,” he added.
The Keynote speaker, the CEO, European Organisation for Sustainable Development, Arshad Rab stressed that with the astronomical increase of Nigeria’s population in face of the economic challenges, there is a need for sustainability.
“And as we know, this number will only continue to rise as the population grows. Conventional economic development has failed to provide the opportunities with the speed that is indeed needed to absorb an increasingly young and dynamic workforce entering the labour market.”
In her remarks, the head, group sustainability, Access Holdings, Omobolanle Victor-Laniyan said the private sector has a pivotal role in driving meaningful change that will positively impact the environment, society, and the country’s economy.
“Throughout this summit, we hope that we engage in insightful discussions, share best practices, and explore groundbreaking ideas. Beyond conversations, we aim to formulate actionable strategies that will serve as a blueprint for the private sector to build on in the coming years.”
