Recapitalisation: CBN targets $1trn in six years

The Central Bank of Nigeria (CBN) has projected that its planned recapitalisation in the banking sector would secure at least $1 trillion for the country by 2030.

The CBN Governor, Olayemi Cardoso, disclosed this on Friday while reviewing the performance of the bank in the first half-year before the Senate Committee on Banking, Insurance and other Financial Institutions.

Mr Cardoso said the recapitalisation in the banking industry would strengthen the financial capacity and stability of the country.

“The ongoing recapitalisation efforts in the banking sector are focused on enhancing financial stability and driving progress toward reaching a $1 trillion economy by 2030”, he said.

Mr Cardoso reaffirmed the CBN’s commitment to stabilise the country’s economy, restore confidence in financial markets, and establish a foundation for sustainable growth.

He also said the bank is ensuring stability of exchange rate, curbing inflation, enhancing financial sector supervision, promoting financial inclusion, and increasing transparency in monetary policy decisions.

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He further outlined key policy measures CBN had implemented to tackle domestic macroeconomic challenges, namely raising the policy rate to 26.25 per cent, increasing Cash Reserve Ratios, normalising Open Market Operations, and adopting Inflation Targeting as a new monetary policy framework.

Chairman of the committee, Tokunbo Abiru, lauded the CBN Governor and his team for their efforts.

Mr Abiru, the senator representing Lagos East Senatorial District, said inflation is reducing in the country as a result of the policies of the CBN.