Emmanuel OchayiProfessor Segun Ajibola, former President of the Chartered Institute of Bankers of Nigeria (CIBN), expressed support for the Central Bank of Nigeria’s (CBN) proposed policy path, focusing on the recapitalization of banks and a return to orthodox banking responsibilities.
Regarding Governor Olayemi Cardoso’s announcement at the 58th annual CIBN dinner, Prof. Ajibola during an interview on ARISE NEWS on Tuesday highlighted the significance of a healthy banking system, emphasizing that capital plays a pivotal role.
Join our WhatsApp ChannelHe cautioned, “The Nigerian banking system has eroded over the years, and for this policy to succeed, we need a clearly defined timeframe for capital categorization and engagement of stakeholders.”
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Reflecting on potential risks, he warned against a repeat of the 2008-2009 banking crisis, urging the CBN governor to involve stakeholders extensively. “Let’s assess not just the desirable figures but also what’s feasible given the economy’s state.”
Ajibola echoed Cardoso’s critique of the national bank’s deviation from its original functions under former Governor Godwin Emefiele. “The CBN lacks the capacity to directly monitor borrowers. Lending to sectors like agriculture without strengthening the Bank of Agriculture is not the right approach.”
Emphasizing caution and inclusive dialogue among stakeholders, Prof. Ajibola affirmed, “The Central Bank’s planned exercise is necessary, but we must prevent unintended consequences by engaging all involved parties in a thorough assessment.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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