The Central Bank of Nigeria has directed commercial banks to channel more funds to productive sectors of the economy following the successful completion of the banking sector recapitalisation programme.
CBN Governor Olayemi Cardoso, while briefing the Senate Committee on Banking, said stronger bank capital should now translate into better governance, improved risk management and increased financing for sectors such as agriculture, manufacturing, infrastructure, technology and SMEs.
Cardoso said recent monetary and foreign exchange reforms had strengthened investor confidence, stabilised the naira and improved Nigeria’s macroeconomic outlook despite global economic uncertainties. He added that inflation continued to moderate, falling slightly from 15.93 per cent in May to 15.91 per cent in June.
He disclosed that the CBN aims to increase monthly diaspora remittances through official channels to $1 billion before the end of the year, up from the current level of over $600 million. Nigeria’s external reserves have also risen to $52.73 billion.
According to the governor, 33 banks have met the new capital requirements after raising a combined N4.65 trillion, with domestic investors providing over 72 per cent of the funds.
The Senate committee, however, urged banks to ensure the recapitalisation exercise translates into greater credit for the real economy. Lawmakers also sought explanations on rising liquidity management costs, Open Market Operations balances, and the handling of the Federal Government’s Ways and Means advances.
