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Nigeria’s apex bank, the Central Bank of Nigeria (CBN) says it will undertake another round of banking consolidation to further stimulate and strengthen the national economy.
The fact was made known by the CBN Governor Sanusi Lamido Sanusi while briefing the Executive Council of Federation (EXCOF) on the performance of the economy in the first quarter of the year.
But addressing journalists in Abuja after the meeting Minister of Information and Communications, Prof. Dora Akunyili said that the CBN governor explained that the banking consolidation would help in stabilizing the economy and ensure strong corporate governance in the financial sector.
“In order to further strengthen the financial sector and ensure its maximum contribution to the economy, the CBN is considering other banking sector regulation initiatives. These will include the replacement of the current universal banking model with commercial, mortgage and non-interest banks with strong emphasis on corporate governance and board performance,” the minister said.
She said that the CBN boss reported to Council that there “had been steady growth in GDP and a moderation in inflation, inter-bank rates and other money market rates, including lending.
“The foreign exchange market was calm and substantially stable, while the capital market is also recovering. However, the growth in monetary and private sector credit aggregates remained sluggish.”
According to her, CBN has also taken initiatives to unlock the credit market and drive real sector activities, through the introduction of the N200 billion SME guarantee scheme and N500 billion for financing power sector projects.
She said the Council also heard that “the CBN is delivering on its key mandate of providing monetary and financial stability.''
Akunyili expressed the hope that the establishment of the Asset Management Company of Nigeria , which bill was recently passed by the National Assembly, would provide a resolution vehicle for addressing banking sector crises.
She said “the Nigerian economy remains resilient and that the near-to-medium term outlook is positive and that monetary policy will continue to be supportive of government objectives.”
The minister noted that stronger growth could be achieved with the provision of critical infrastructure and implementation of on-going reforms in all the sector of the economy.
Akunyili further said that the council commended the efforts of the CBN governor in the reforming and repositioning of the banking sector.
Part of the CBN report made available to reporters put the country’s economic growth rate at 7.53 per cent with crude oil/natural gas at 0.27 per cent.
Nigeria’s apex bank, the Central Bank of Nigeria (CBN) says it will undertake another round of banking consolidation to further stimulate and strengthen the national economy.
The fact was made known by the CBN Governor Sanusi Lamido Sanusi while briefing the Executive Council of Federation (EXCOF) on the performance of the economy in the first quarter of the year.
But addressing journalists in Abuja after the meeting Minister of Information and Communications, Prof. Dora Akunyili said that the CBN governor explained that the banking consolidation would help in stabilizing the economy and ensure strong corporate governance in the financial sector.
“In order to further strengthen the financial sector and ensure its maximum contribution to the economy, the CBN is considering other banking sector regulation initiatives. These will include the replacement of the current universal banking model with commercial, mortgage and non-interest banks with strong emphasis on corporate governance and board performance,” the minister said.
She said that the CBN boss reported to Council that there “had been steady growth in GDP and a moderation in inflation, inter-bank rates and other money market rates, including lending.
“The foreign exchange market was calm and substantially stable, while the capital market is also recovering. However, the growth in monetary and private sector credit aggregates remained sluggish.”
According to her, CBN has also taken initiatives to unlock the credit market and drive real sector activities, through the introduction of the N200 billion SME guarantee scheme and N500 billion for financing power sector projects.
She said the Council also heard that “the CBN is delivering on its key mandate of providing monetary and financial stability.''
Akunyili expressed the hope that the establishment of the Asset Management Company of Nigeria , which bill was recently passed by the National Assembly, would provide a resolution vehicle for addressing banking sector crises.
She said “the Nigerian economy remains resilient and that the near-to-medium term outlook is positive and that monetary policy will continue to be supportive of government objectives.”
The minister noted that stronger growth could be achieved with the provision of critical infrastructure and implementation of on-going reforms in all the sector of the economy.
Akunyili further said that the council commended the efforts of the CBN governor in the reforming and repositioning of the banking sector.
Part of the CBN report made available to reporters put the country’s economic growth rate at 7.53 per cent with crude oil/natural gas at 0.27 per cent.
