The head of the apex bank stated that licenses will be re-evaluated and organizations operating outside the scope of their licenses could face fines.
As mentioned earlier, the CBN would address fundamental weaknesses and restore macroeconomic stability through corrective measures.
He said; “I understand that many of you are concerned about the current state of our economy. I want to assure you that it is indeed a huge challenge, but not insurmountable. With the right policies, we can overcome these obstacles and pave the way for progress and prosperity. I am confident and optimistic that by taking appropriate corrective measures and strategic steps, we can restore macroeconomic stability and address fundamental shortcomings.
“Despite the challenging global and domestic macroeconomic environment, the Nigerian financial sector has demonstrated resilience in 2023, with key indicators of financial soundness largely meeting regulatory benchmarks. Stress tests carried out on the banking sector also indicate its strength under mild to moderate scenarios of continued economic and financial stress, although there is room for further strengthening and improving resilience to shocks. Therefore, much work remains to be done to prepare the industry for future challenges, a topic I will address later in my speech.
“Given the policy imperatives and projected economic growth, it is critical for us to evaluate the suitability of our banking sector to serve the envisioned larger economy. It is not just about the stability of the financial system at the moment, as we have already established that the current assessment shows stability. However, we must ask: will Nigerian banks have sufficient capital relative to the needs of the financial system to serve a $1.0 trillion economy in the near future? In my opinion, the answer is “No!” unless we take action. Therefore, we have to make difficult decisions about capital adequacy. As a first step, we will instruct the banks to increase their capital.”
The President Bola Tinubu-led government will continue its path of reforms, said Finance Minister and Coordinating Economy Minister Wale Edun, who spoke at the dinner. He predicted that this path will soon start producing results.
The minister stated that the government is confident that it is on the right track and will stick to it to ensure that the economy thrives. The reforms that have been implemented have been bold and courageous.
He continued, saying that while it may seem like the changes have made things more difficult, it is critical to stick with them as the results start to show. He doesn't want to say anything after that.
“I can assure you that in the coming days you will continue to hear some of the progress designed to turn the economy around and encourage investors, grow the economy, create jobs and reduce poverty,” said he.