Chukwu Calls for Tech Adoption in Nigerian Banks’ Recapitalisation to Boost Efficiency

Johnson Chukwu, Group Managing Director of Cowry Assets Management Limited, has urged the Central Bank of Nigeria (CBN) to utilize technology and Bank Verification Numbers (BVN) to expedite the ongoing bank recapitalization exercise verification process. Speaking at the annual workshop of the Capital Market Correspondents Association of Nigeria in Lagos, Chukwu highlighted the delays caused by the CBN’s verification process, which has stalled the conclusion of public offers and rights issues initiated by banks. He emphasized that technology could streamline the process, allowing quicker investor allotments and reducing missed reinvestment opportunities.

Chukwu criticized the stringent requirements for investing in bank shares, such as providing three years of audited financial statements and tax clearance certificates, which he argued discourage investors. He called for more balanced regulations to foster confidence and ease participation in the capital market. He stressed that banks’ recapitalisation is vital for strengthening Nigeria’s banking sector and fostering economic growth but warned that prolonged delays in verification could harm investor confidence and dampen market activity.

To enhance the recapitalisation process, Chukwu advocated improved collaboration between the CBN and other regulatory bodies to create a stable regulatory environment. He also called on banks to enhance transparency through detailed financial disclosures and forward-looking guidance. By addressing regulatory uncertainties and improving corporate governance, Chukwu believes the Nigerian capital market can unlock significant opportunities for sustainable bank recapitalisation and economic development.