Expert Supports CBN’s Bank Recapitalization Policy, Emphasizes Caution, Stakeholder Engagement

November 29, 2023
Expert Supports CBN's Bank Recapitalization Policy, Emphasizes Caution, Stakeholder Engagement

Professor Segun Ajibola, former President of the Chartered Institute of Bankers of Nigeria (CIBN), expressed support for the Central Bank of Nigeria’s (CBN) proposed policy path, focusing on the recapitalization of banks and a return to orthodox banking responsibilities.

Regarding Governor Olayemi Cardoso’s announcement at the 58th annual CIBN dinner, Prof. Ajibola during an interview on ARISE NEWS on Tuesday highlighted the significance of a healthy banking system, emphasizing that capital plays a pivotal role.

Join our WhatsApp Channel

He cautioned, “The Nigerian banking system has eroded over the years, and for this policy to succeed, we need a clearly defined timeframe for capital categorization and engagement of stakeholders.”

READ ALSO: CBN’s FX Reforms Pose Challenges, Opportunities For Investment Bankers, Says AIHN

Reflecting on potential risks, he warned against a repeat of the 2008-2009 banking crisis, urging the CBN governor to involve stakeholders extensively. “Let’s assess not just the desirable figures but also what’s feasible given the economy’s state.”

Ajibola echoed Cardoso’s critique of the national bank’s deviation from its original functions under former Governor Godwin Emefiele. “The CBN lacks the capacity to directly monitor borrowers. Lending to sectors like agriculture without strengthening the Bank of Agriculture is not the right approach.”

Emphasizing caution and inclusive dialogue among stakeholders, Prof. Ajibola affirmed, “The Central Bank’s planned exercise is necessary, but we must prevent unintended consequences by engaging all involved parties in a thorough assessment.

emmmmmm
+ posts

Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

Emmanuel Ochayi

Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

Nigeria Optimistic On Achieving 1.7mpd Crude Despite November Output Drop
Previous Story

Oil Theft Continues To Frustrate Nigeria’s Efforts To Ramp Up Production

Naira To Sustain Depreciation In 2024 - Analysis Reveals
Next Story

CBN’s Old, New Naira Notes To Co-exist Indefinitely – Supreme Court Rules

Latest from Business

Market Analysis: Nigeria’s Q2 Growth Numbers In View

Sector details from today's GDP, especially the balance between services resilience and oil price variability, could shape positioning for the meeting, Daniel Wesonga, Pepperstone'sSenior Sales Manager, said in an exchange with Prime Business Africa Friday morning.
Recapitalisation: UBA Extends Deadline For Rights Issue

Recapitalisation: UBA Extends Deadline For Rights Issue

The United Bank for Africa (UBA) has extended the closing date for its rights issue by two weeks. The rights issue, which was originally scheduled to close on 5 September 2025, has been shifted to 19 September 2025.Join our WhatsApp Channel This was contained in
Nigeria Optimistic On Achieving 1.7mpd Crude Despite November Output Drop
Previous Story

Oil Theft Continues To Frustrate Nigeria’s Efforts To Ramp Up Production

Naira To Sustain Depreciation In 2024 - Analysis Reveals
Next Story

CBN’s Old, New Naira Notes To Co-exist Indefinitely – Supreme Court Rules

Don't Miss

Moghalu Lists What Makes Emefiele Most Damaging CBN Governor In History

FCT Court Grants Emefiele Bail

The Federal Capital Territory High Court has granted bail to
DSS Rearrests Emefiele After Tussle With Prison Officials

FG Refutes Reports Of Plea Deal With Former CBN Governor

In a surprising twist to the ongoing saga surrounding the