Nigeria: CBN Urges Banks to Recapitalize for $1 Trillion Economy Goal

The Central Bank of Nigeria (CBN) has issued a directive instructing banks to strengthen their capital base in alignment with the envisioned one trillion-dollar economy.

Governor Olayemi Cardoso delivered this message on Friday during the 58th Annual dinner of the Chartered Institute of Bankers of Nigeria in Lagos. Cardoso emphasized the ambitious GDP growth target of one trillion dollars set by the Bola Tinubu administration for the next seven years. Nigerian banks are urged to undertake necessary measures, part of the challenging decisions needed to align with this goal and contribute to the economic recovery.

Additionally, Cardoso announced the discontinuation of direct quasi-fiscal interventionist activities by the CBN, which injected over 10 trillion naira into the economy in recent years. Instead, the apex bank will adopt orthodox tools for implementing monetary policies, signaling a shift in approach to achieve economic objectives.