Nigeria’s foreign investments rising on proposed bank recapitalisation -Cardoso

Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), attributes the recent rise in foreign investments to the ongoing bank recapitalization program.

This initiative aims to bolster banks’ liquidity and lending capacity, which has already led to an increase in foreign direct investments and foreign exchange earnings.

The recapitalization involves various measures such as issuing shares, public offers, and mergers. Some banks are expected to adjust their capital base, with foreign investments reaching $3.38 billion in Q1 2024.

The new capital requirements for banks, set at N500 billion for those with international authorizations, are prompting some banks to seek mergers or adjustments to meet the thresholds.

Cardoso emphasized the importance of ensuring that new shareholders do not bring illicit funds into the banking system. He also highlighted the need for other economic sectors to grow alongside the banking sector to achieve the nation’s $1 trillion economy target.

(Punch)