By Aaron Ossai
The Central Bank of Nigeria, CBN Governor, Yemi Cardoso has allayed fears of Nigerians over the state of commercial banks in the country saying that ‘they are safe, sound and resilient.’
Speaking when he appeared before the House of Representatives Committee on Banking Regulations yesterday, Cardoso said that for proper supervision of commercial banks in Nigeria, the CBN has taken decisive actions to ensure safety of depositors’ funds.
“One of the key measures taken by the apex bank includes the recapitalization of the banking sector by raising the minimum capital base to support the $1 trillion economy envisioned by the Federal Government of Nigeria (FGN) by 2030.
“Banks are required to meet these new thresholds by March 31, 2026, with several options available for reaching these targets.
“These options include issuing of new equities, engaging in mergers and acquisitions, or adjusting their operational licenses. The Bank also revoked the licence of Heritage Bank, facilitated the successful merger of Unity Bank and Providus Bank, revised Cybersecurity Rules for Banks and PSPs, suspension of processing fees on cash deposits, and enhanced AML/CFT supervision, amongst others”, he said.
On Monetary and fiscal policy coordination, he said they had strengthened collaboration during the period under review.
“In this regard, several joint committees have been instituted to build synergy and to provide platforms for key stakeholders’ engagements to explore ways through which monetary policy implementation and fiscal operations can be conducted in a mutually reinforcing manner.
“Overall, our policy measures reflect a holistic approach to addressing various challenges in the economy. While some measures have immediate effects, others are designed to bring about long-term structural changes. Our ultimate goal is to create a more stable, resilient, and efficient monetary and financial system that can better serve the Nigerian economy, while adhering to global best practices”, he added.
Cardoso said the Bank’s numerous policy initiatives are yielding significant results across various sectors of the economy.
“In the foreign exchange market, we have achieved increased transparency and improved overall supply. By allowing the foreign exchange rate to be determined by market demand and supply, the CBN has reduced arbitrage and speculative activities, and eliminated the front-loading of FX demand”, he declared.
Earlier in his address, the Chairman, House Committee on Banking Regulations, Hon. Mohammed El-Rufai lauded the Governor of the Central Bank of Nigeria for his relentless efforts in implementing policies aimed at stabilizing the economy.
He said the CBN Governor has faced the daunting task of steering the nation’s monetary policy amidst a challenging economic landscape.
“Under your one-year stewardship, the CBN has implemented a series of ground- breaking measures aimed at enhancing market transparency, improving financial stability, fostering a more secure investment environment, and shifting towards a market-driven exchange rate regime, to restore confidence and stabilize the economy,” he added.
