President Bola Tinubu has praised the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, for spearheading reforms aimed at stabilising the financial system and restoring investor confidence. The President made the commendation during the inauguration of the Gateway International Airport in Ogun State.
Recognition of CBN Leadership
Tinubu lauded the CBN's foreign exchange reforms, stringent regulatory measures, and the ongoing bank recapitalisation exercise. He singled out Cardoso, stating, "I must single out one man here, Olayemi Cardoso, thank you very much for all that you are doing for the country." The President expressed confidence in the apex bank's leadership, describing Cardoso as disciplined, focused, and committed to rebuilding the economy for long-term growth.
Recapitalisation Programme Progress
The President's remarks follow the March 31 deadline set by the CBN for banks to meet new minimum capital requirements. The recapitalisation programme, considered one of the boldest in Nigeria's banking sector, raised minimum capital thresholds to N500 billion for international banks and N200 billion for national banks. While most lenders have complied, recapitalisation for Union Bank, Polaris Bank, and Keystone Bank remains ongoing due to regulatory and legal issues. The CBN assured depositors that these banks remain stable and capable of meeting their obligations.
Challenges and Ongoing Processes
Union Bank's challenges stem from an audit that uncovered material concerns, leading to the removal of its board and senior management in January 2024. This action is under litigation, with the CBN appealing a court judgment questioning the removals' legality. Polaris Bank and Keystone Bank are also undergoing recapitalisation under close supervision. Additionally, the proposed merger between Providus Bank and Unity Bank is nearing completion amid legal and regulatory processes.
