Godwin Emefiele, Nigerian newly reappointed central bank governor.
Nigerian Banks may soon be made to face a new phase of recapitalisation hurdles. This new fact was brought to the public domain by newly re-appointed Governor of the Country’s Central Bank, Mr. Godwin Emefiele, in Abuja on Monday, June 24 during a press briefing on his policy road map for the next five years as governor of the the Nigerian Central Bank.
According to him, recapitalisation of Nigerian banks was long overdue because it was done last in 2004 by Prof. Charles Soludo, a former governor of the apex bank.
“We will pursue the programme of recapitalisation of our banks in the next five years to ensure they are among the top 500 in the world.
Emefiele said, “It is Soludo that did the last recapitalisation of banks in 2004 from two billion naira to N25 billion.
“If you relate N25 billion to present exchange rate, you realise is lower than 75 million dollars.
“The then recapitalisation has been weakened and there is a need to recapitalise and reposition the Nigerian banks,”
The Central Bank Governor also promised to would work with Deposit Money Banks in the next five years to boost credit to the real sector as well as the creative and education sector.
He said the apex bank will over the next five years increase its support to farmers in order to bring down the rate of inflation.
He promised to pursue an economic agenda that would make the economy grow by double digits through targeted programmes that would boost output.
According to him, the CBN under his leadership would work with deposit money banks to enable Micro, Small and Medium Enterprises (MSMEs) have access to credit.
He said that MSMEs constituted about 90 per cent of businesses in the country, hence the need for this group to have access to credit facilities. in view of the importance of this group of businesses to the growth of the country’s economy.