Nigeria: CBN Aims for $1 Trillion Recapitalisation by 2030

The Central Bank of Nigeria (CBN) has announced a strategic plan for recapitalisation in the banking sector, targeting at least $1 trillion by 2030. CBN Governor, Olayemi Cardoso, revealed this ambition on Friday during a review of the bank’s performance for the first half of the year before the Senate Committee on Banking, Insurance, and Other Financial Institutions.

Mr. Cardoso emphasized that the recapitalisation effort is crucial for bolstering the financial capacity and stability of Nigeria’s economy. “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 stated.

He reiterated the CBN’s dedication to stabilising the country’s economy, restoring confidence in financial markets, and laying a foundation for sustainable growth. Key areas of focus include maintaining exchange rate stability, curbing inflation, enhancing financial sector supervision, promoting financial inclusion, and increasing transparency in monetary policy decisions.

Mr. Cardoso outlined several policy measures that the CBN has implemented to address domestic macroeconomic challenges. These include raising the policy rate to 26.25 percent, increasing Cash Reserve Ratios, normalising Open Market Operations, and adopting Inflation Targeting as a new monetary policy framework.

The Chairman of the Senate Committee, Tokunbo Abiru, praised the CBN Governor and his team for their efforts, noting that the bank’s policies have contributed to a reduction in inflation. Mr. Abiru, representing Lagos East Senatorial District, commended the CBN’s commitment to economic stability and growth.