Furthermore, the head of the apex bank announced that there would be a review of licenses, and entities operating beyond the scope of their licenses would face sanctions. The Central Bank of Nigeria (CBN) is committed to implementing corrective measures to restore macroeconomic stability and address underlying deficiencies ,leadership reports.
He assured, “I acknowledge the concerns about our current economic situation. While it poses a significant challenge, it is not insurmountable. With appropriate policy measures, we can overcome these challenges and pave the way for progress and prosperity. Through strategic steps and corrective actions, we can restore macroeconomic stability and address fundamental issues.”
Despite the complex global and domestic macroeconomic environment, the Nigerian financial sector exhibited resilience in 2023, meeting regulatory benchmarks. Stress tests on the banking industry indicated strength under mild-to-moderate stress scenarios. However, there is a need for further strengthening to enhance resilience to shocks. The speaker emphasized the importance of fortifying the industry for future challenges.
Considering policy imperatives and projected economic growth, evaluating the adequacy of the banking industry to serve a larger economy is crucial. Stability in the financial system is not just about the present; it’s about ensuring Nigerian banks have sufficient capital for a $1.0 trillion economy in the near future. The speaker highlighted the necessity of making tough decisions on capital adequacy, starting with directing banks to increase their capital.
During the dinner, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, affirmed that the government led by President Bola Tinubu would persist in its reform agenda. He expressed confidence that these bold and courageous reforms would soon yield positive results, despite the initial challenges they posed.
Edun acknowledged that the reforms, while making things difficult, were necessary to steer the economy in the right direction. He promised upcoming announcements on progress that aims to stimulate economic growth, attract investors, create jobs, and alleviate poverty.
“In the next few days, you will hear about progress meant to turn around the economy and encourage investors, fostering economic growth, job creation, and poverty reduction,” he concluded.