Breaking News: CBN seeks fresh recapitalization of financial institutions

Akin Akinbobola – Abuja

Indications emerged on the plans by Central Bank of Nigeria (CBN) to raise capitalisation of Domestic Money Banks operating in Nigeria.

Godwin Emefiele, CBN Governor disclosed this at a world press conference, explained that the initiative became necessary to enable them more resilient and rank among top 500 in the world.

Emefiele also set a five year target to increase the 34 million bank customers to 100 million by year 2024 next 5 years by ensuring agrressive enrolment of Small and Medium Enterprises (SMEs) into the Bank Verification Number (BVN).

According to him, some of the successes recorded by the apex bank over the past few years include: registration of over N400 billion worth of assets through the Credit Bureau System.

He observed that the system has helped small businesses to access finance from various banks.

Emefiele whose tenure was renewed for additional five years also disclosed plans by the apex bank to synergize with domestic banks in developing a framework for securitisation of mortgage loans which will subsequently be sold at the country’s capital market.

He however hnderscored the need to reverse the high level of import dependency which has affected jobs ans deflate Nigeria’s foreign reserves.

In the bid to reverse the trend, the CBN helmsman assured on strengthening the Anchor Borrowers scheme which he argued has supported over one million smallholder farmers especially in the rice production sub-sector.

In his assessment of the electronic payment system introduced by the bank, Emefiele disclosed that the payment which recorded three-fold also accelerate financial access and inclusion across the country.

According to him, the push by the apex bank to drive inflation to single digits, has help other relevant Nigerian authorities in pushing economic growth to the five percent target.