Nigeria: Senator Urges CBN to Collaborate with National Assembly on Bank Recapitalisation

Senator Tokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance, and other Financial Institutions, has urged the Central Bank of Nigeria (CBN) to involve the National Assembly and key stakeholders in its proposed bank recapitalization plan.

Abiru made this call on Saturday during the committee’s retreat in Lagos State, held in collaboration with the Nigeria Deposit Insurance Corporation (NDIC).

Highlighting the importance of strengthening the financial sector to facilitate its role in the economy, Abiru welcomed the CBN’s initiative to recapitalize banks but emphasized the necessity of engaging critical stakeholders, including the National Assembly.

He stated, “For the financial sector to remain resilient and maintain public confidence, it must undergo continuous strengthening. Therefore, it is imperative for the CBN to engage with all relevant stakeholders, including the National Assembly.”

Regarding the purpose of the retreat, Abiru emphasized the need for a deeper understanding of the deposit insurance business led by the NDIC. He acknowledged the resilience of Nigerian banks despite global and domestic economic challenges, emphasizing the importance of understanding the regulators’ roles, especially in light of the impending bank recapitalization.

Bello Hassan, the Managing Director/Chief Executive of the NDIC, highlighted the retreat’s objective of fostering mutual cooperation between the legislature and the corporation.

He stressed the critical role of the Deposit Insurance System in ensuring financial system stability and underscored the importance of a robust legal framework and effective oversight in achieving this goal.

Hassan emphasized the necessity for the NDIC to have the requisite powers outlined in enabling legislation and highlighted the benefits of sound oversight by the legislature in ensuring the stability of the banking system and the economy as a whole.

The NDIC, empowered to safeguard depositors of deposit-taking financial institutions, plays a vital role in promoting sound risk management and contributing to financial system stability in Nigeria.