Professor Segun Ajibola, former President of the Chartered Institute of Bankers of Nigeria (CIBN) has addressed the Central Bank’s recently discussed policies.
Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso at the 58th annual dinner of the Chartered Institute of Bankers of Nigeria (CIBN) celebrating its 60th anniversary, announced his soon to be established policy path for the CBN which largely includes the recapitalization of banks in the nation and returning the national bank to its orthodox responsibilities.
In an ARISE NEWS interview on Tuesday, Prof. Ajibola assured that the policies are on the right track, stating that a healthy banking system is mainly defined by its capital.
He said the Nigerian banking system has eroded over the years and for the governor’s policy to take off, there would need to be emphasis on not only establishing a clearly defined timeframe for the categorization of capital levels, but also engagement of stakeholders.
“It is an exercise that is due but due caution must be taken so we don’t repeat the 2008-2009 banking crisis.
“The CBN governor must engage with stakeholders to avert any possible consequences of the recapitalization exercise.
“Let all stakeholders sit down, look at the facts and ask ourselves, not only about the figures that are desirable but the figures that are obtainable, given the state of the economy. The Central Bank is right in saying this exercise is now due.”
Professor Ajibola who is a member of the bar agreed with Yemi Cardoso’s criticism of the national bank under its former governor, Godwin Emefiele stating that it abandoned its original duties without the right template.
“There was no way a statute would have envisaged the CBN lending directly to farmers, manufacturers, and the entertainment industry because the central bank lacks the capacity to monitor borrowers directly.
“To make it worse lending to agriculture which is one of the most difficult sectors to manage and govern instead of strengthening the bank of agriculture which is the right template.”
Glamour Adah
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