Yemisi Izuora
The Central Bank of Nigeria (CBN) is weighing the impact of the current protectionist development approach by the US and other big economies which has continued to pervade the global system.
The Bank said it is not compromising key indicators of regulatory reforms and in particular measures that will provide buffer to the national economy.
The Deputy Governor, Corporate Services, of the Bank, Ms. Emem Usoro, while speaking at the Seminar for Finance Correspondents and Business Editors, which began on April 14 to April 16, 2025, in Abuja, said the financial sector should particularly pay significant attention to bank recapitalisation to ensure that banks are strong, resilient and stable enough to carry out financial intermediation, and the much-needed financing of development projects and programmes.
Usoro, informed the audience that the current global system has manifested even more dynamic paradigms, with intense globalisation and guided protectionism, with countries favouring trade wars and retaliations.
This she said brings to the fore the readiness and preparedness of Nigeria and banking system to build a more sophisticated, vibrant economy.
Dwelling on the theme of the seminar, “Playing the Global Game: Banking Recapitalization Towards a One-Trillion Dollar Economy”, Usoro, described it apt at this time, and encouraged frank discussions with far-reaching recommendations that will enhance understanding of the workings of the global financial system and how to position the Nigerian Banks to take full advantage of the opportunities presented by the dynamics of these initiatives.
The Deputy Governor, noted 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.
Globalisation, she went on to stress, has broken the limits of financial flows, and investors have inadvertently taken full advantage of the opportunities. However, countries and their financial systems must be prepared and ready to utilise opportunities created by financial globalisation through appropriate policy support and actions.
“There is no gain saying that the financial system’s size and quality play critical roles in powering and financing an economy.
“Literature has established that financial resources, complimented by quality human capital and technology, remain the major driving forces of industrialisation since the emergence of the 4th industrial revolution.
“To play this critical role, the banking system must grow, expand and deepen through deliberate policy efforts. As you are aware, the Nigerian banking system has also undergone reforms, including bank recapitalisation and consolidation exercises.” she said.
Usoro, also recalled that 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.
“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.” she added.