Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), announced yesterday that foreign investors are actively channeling funds into Nigerian banks as part of the ongoing recapitalisation efforts. Speaking at the Afrinvest 2024 Banking Sector Report Launch in Abuja, Cardoso, represented by Acting Director of Financial Policy and Regulations John Onoja, emphasized that the CBN is vigilant against illicit funds and unsavory actors entering the banking sector.
Cardoso highlighted that the recapitalisation is a crucial strategy to enhance the resilience of Nigerian banks and foster a robust financial system. It is also aligned with the federal government’s ambition to reach a $1 trillion GDP by 2030. He noted, “The recapitalisation drive is generating significant activity across various sectors. It will increase the lending capacity of banks by improving liquidity, thus enabling them to better support critical sectors.”
He further pointed out that foreign direct investments are already flowing into the country, boosting foreign exchange liquidity and positively impacting the forex market. The CBN will enforce stringent criteria for new shareholders, board members, and senior management to prevent illicit funds from infiltrating the system.
Cardoso also mentioned that the recapitalisation will contribute to GDP growth, improve risk management, and enhance credit ratings for banks. He also highlighted opportunities for smaller investors, stating that share dilution would create new chances for them to invest in well-performing financial institutions, further invigorating the equity market.
