The Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, recently announced that foreign investors are injecting funds into Nigerian banks as part of an ongoing recapitalization initiative.
Speaking at the Afrinvest 2024 Banking Sector Report Launch in Abuja, Cardoso, represented by Acting Director of Financial Policy and Regulations, Mr. John Onoja, assured that his team is vigilant in preventing the influx of illicit funds and ensuring that unsavory entities do not take over Nigerian banks.
Cardoso underscored the importance of the recapitalization effort, which aims to support the federal government’s goal of achieving a $1 trillion economy by 2030. He stated, “The recapitalization exercise of the Nigerian banking sector is crucial for strengthening the resilience of Nigerian banks and promoting a sound financial system. It will support the government’s goal to achieve a GDP of $1 trillion by 2030. We are pleased to see that the capitalization drive has already sparked significant activity across various sectors.”
He also elaborated on the benefits of the recapitalization program, noting, “The recapitalization program will increase the lending capacity of banks, empowering them to lend more to relevant sectors. This will also attract more foreign investments, as evidenced by the increasing foreign direct investments and the influx of foreign exchange liquidity through capital importation certificates.”
Cardoso emphasized the importance of maintaining rigorous enforcement of the Fit and Proper Persons criteria for new shareholders and senior
