Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele signaled on Monday, plans to get the banks recapitalise to a new level that makes them more resilient and rank among top 500 globally.
Emefiele said the present N25bn capital base of banks is no longer sufficient, having eroded substantially by the weakened naira.
Emefiele disclosed this in Abuja at a world press conference where he outlined his agenda for the next five years as the head of the CBN.
He said , however that the proposed policy is subject to the final decision of the committee of governors who will then agree on the framework.
He related the N25bn at about N100 exchange rate in 2004 which was about $200m, but today, at N360 exchange rate is even substatially lower than $75m.
“The capitalisation has weakened quite substatially and it is time to recapitalize the banks once again.”
Emefilee also committed that the the CBN in the next five years will strive towards a single digit inflation rate as well as help government attain the 5% growth target.
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