Prominent Nigerian billionaire and investor, Femi Otedola, has publicly endorsed the economic reforms of President Bola Ahmed Tinubu's administration. He simultaneously revealed that First Bank of Nigeria Limited has successfully met the Central Bank of Nigeria's (CBN) N500 billion minimum capital requirement for an international banking licence.
Otedola Praises Economic Leadership, Highlights First Bank's Achievement
In a significant statement released on Thursday, Otedola commended both President Tinubu and the Governor of the Central Bank, Mr. Yemi Cardoso, for implementing what he termed "bold and necessary" economic policies. He argued that these reforms are crucial for stabilising the Nigerian economy and rebuilding confidence among both local and international investors.
The businessman specifically pointed out that the current phase of reforms deserves recognition due to their potential long-term positive impact on the nation's economic trajectory. He linked this endorsement with the disclosure about First Bank, the commercial banking subsidiary of FBN Holdings Plc, confirming it has already satisfied the CBN's new capital threshold.
Otedola further stated that shareholders of the holding company are prepared to inject more capital into its existing subsidiaries and explore new business ventures, signalling strong backing for the group's expansion plans.
Call for Stronger Banks and Applaud for Monetary Policy
Looking beyond the current milestone, Otedola proposed an even more ambitious target for the banking sector. He called on the CBN to consider raising the minimum capital requirement for international banking licences from N500 billion to at least N1 trillion.
He justified this by stating that an economy with aspirations to reach a $1 trillion GDP cannot rely on weakly capitalised financial institutions. "Stronger banks mean better governance, broader ownership, and institutions that are not run like personal estates, a problem we have lived with for far too long," Otedola emphasised.
On monetary policy, the billionaire reserved high praise for CBN Governor Yemi Cardoso, describing his leadership as exceptional. He attributed the recent slowdown in inflationary pressures to the apex bank's disciplined return to orthodox monetary policy frameworks.
Otedola noted that the easing inflation is not just a theoretical improvement but is gradually providing tangible relief to households and businesses across Nigeria. He also hailed the reforms in the foreign exchange market, stating they have restored a confidence that was missing for years. The strengthening of the Naira through market-driven mechanisms, as opposed to artificial controls, was highlighted as a key signal of renewed policy credibility.
Evidence of Progress and a Path Forward
As further evidence of the positive outcomes under the current economic team, Otedola pointed to Nigeria's external reserves, which he said have climbed to a seven-year high of over $46 billion. He described this accumulation as a testament to the steady leadership at the helm of the Central Bank.
Otedola concluded his remarks by expressing strong confidence in Governor Cardoso's leadership and urging him to remain focused on the ongoing reforms. He framed the present moment as a critical turning point for Nigeria and called on all stakeholders to continue supporting monetary and fiscal policies designed to build a more resilient economic foundation for the future.
The businessman's comments come amidst his own significant corporate moves, including the recent sale of his majority stake in Geregu Power Plc in a transaction valued at approximately N1.088 trillion ($750 million).
