November 27, 2023

…Call for strategic consultations

As the Central Bank of Nigeria (CBN) plans to introduce a new capital base for banks in Nigeria, Economists have called for strategic consultations to  be put in place for the process to be fluid and successful.

They also cautioned the Central Bank of Nigeria (CBN) not to force banks into unholy alliances.

Segun Ajibola, a Professor of economics at Babcock University, Ogun State and the Founder of Centre for Promotion of Private Enterprise, Muda Yusuf both spoke on Channels Television’s Sunrise Daily programme on Monday.

They cautioned the apex bank from repeating some mistakes made during the last recapitalisation of commercial banks in the country in 2005.

The economists agreed that recapitalisation of banks has become inevitable but it must be done in such a way that the mergers and acquisitions that would hit banks won’t lead to massive job cuts.

“What we had in 2005 was very unfortunate. Banks should not be stampeded,” Yusuf said, urging the apex banks give banks enough time for a systemic migration.

He suggested a year or two for the process and not for the apex bank to insist on a short deadline like what was done during the era of ex-President Olusegun Obasanjo.