The Central Bank of Nigeria (CBN) has explicated and reaffirmed its decision to recapitalize the Nigerian banking industry.
The Deputy Governor of CBN, Mr. Philip Ikeazor, while speaking in Abeokuta on Friday, said that CBN embarked on the recapitalization exercise to further strengthen and reposition the industry to remain globally competitive
Ikeazor delivered the keynote speech at the ongoing Retreat of the Association of Corporate Affairs Managers of Banks (ACAMB) themed; “Banks Recapitalization and Beyond: Amplifying Brand Resilience & Stakeholders’ Financial Inclusivity”.
“The primary objective of the CBN for the exercise is to ensure that Nigerian banks maintain sufficient buffers to absorb shocks, sustain credit flows, and remain competitive in an increasingly interconnected but more unpredictable global environment”; Ikeazor said.
Citing the benefits from the 2005 recapitalization, Ikeazor said “the current consolidation exercise is designed to build capacity for the next generation of banks that are well positioned to face and overcome future challenges and have seats at the table of global competitiveness — A banking system that has the capacity and boldness to finance ambitious infrastructure projects, the creativity and drive to innovate and to support innovation, and committed to promoting inclusive and sustainable growth and development – all critical in transforming our economy from the one of potential to one of realization and manifestation.”
Ikeazor said that “effective recapitalization goes beyond financial metrics; it demands a strategic approach to fostering transparency, coherence, and proactive engagement within the sector. It is essential that stakeholders recognise their roles not only in safeguarding the integrity of the financial system, but also in shaping narratives that promote stability and progress. By nurturing a culture of openness and responsiveness, banks, through their communication and marketing professionals, can build enduring relationships with customers, investors, and the wider public, ensuring the long-term success of this transformative initiative.”
He reminded members of ACAMB of their role being an inflection point between policy and perception. They have a duty to translate technical reforms into public understanding and transform skepticism and uncertainty into trust and confidence.
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Ikeazor further charged the corporate communicators to maintain a robust dialogue and collaboration among all participants in the financial ecosystem being the sure way to lay a solid foundation for enduring stability and progress
He encouraged them to focus on three key imperatives in advancing their role, these are transparency, coherence and Proactive Engagement.