The head of the apex bank stated that licenses will be reevaluated and that organizations operating over the scope of their licenses may face penalties.
As previously stated, the CBN would be addressing fundamental weaknesses and restoring macroeconomic stability through corrective actions.
He said; “I understand that many of you have concerns about the current state of our economy. I want to assure you that while it is indeed a formidable challenge, it is not insurmountable. With the right policy measures, we can overcome these obstacles and pave the way for progress and prosperity. I am confident and optimistic that by taking appropriate corrective actions and strategic steps, we can restore macroeconomic stability and address fundamental flaws.
“Indeed, despite the challenging global and domestic macroeconomic environment, Nigeria’s financial sector has demonstrated resilience in 2023, with key indicators of financial soundness largely meeting regulatory benchmarks. Stress tests conducted on the banking industry also indicate its strength under mild-to-moderate scenarios of sustained economic and financial stress, although there is room for further strengthening and enhancing resilience to shocks. Therefore, there is still much work to be done in fortifying the industry for future challenges, a topic that I will delve into later in my address.
“Considering the policy imperatives and the projected economic growth, it is crucial for us to evaluate the adequacy of our banking industry to serve the envisioned larger economy. It is not just about the stability of the financial system in the present moment, as we have already established that the current assessment shows stability. However, we need to ask ourselves: Will Nigerian banks have sufficient capital relative to the financial system’s needs in servicing a $1.0 trillion economy in the near future? In my opinion, the answer is “No!” unless we take action. Therefore, we must make difficult decisions regarding capital adequacy. As a first step, we will be directing banks to increase their capital.”
The government led by President Bola Tinubu will continue on its road of reforms, according to Minister of Finance and Coordinating Minister of the Economy Wale Edun, who spoke at the dinner. He predicted that this path will soon start to produce results.
The minister stated that the government is confident it is on the right track and would stick with it to make sure the economy prospers. The reforms that have been implemented have been audacious and brave.
He continued, saying that even though it seems like the changes have made things harder, it is crucial to stick with it since the results are starting to become apparent. After that, he won’t say anything more.
“In the next few days, I can assure you will continue to hear some of the progress that is meant to turn around the economy and to encourage investors, to grow the economy, creating jobs and reducing poverty,” he said.
