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Nigerian banks recapitalised soon, economic view bright, CBN

NIGERIAN banks are expected to be recapitalised as soon as possible and the near-to-medium-term outlook for Nigeria’s economy was positive, Central Bank Governor Lamido Sanusi said on Wednesday.


 Nigeria’s banking sector was rocked in August when the central bank initially injected 400 billion naira to bail out five banks considered a risk to the banking system.“The Nigerian banks have brighter prospects for growth opportunities,” Sanusi said at the Standard Bank Africa Forum conference in Cape Town.

No bank will be allowed to fail as (Central Bank of Nigeria) CBN expects the banks on which regulatory actions were taken to be recapitalised as soon as possible,” he said.

The central bank injected the money into Afribank, Finbank, Intercontinental Bank, Oceanic Bank and Union Bank and sacked senior executives after a special audit found lax governance had left them so weakly capitalised they posed a systemic risk.

The central bank said on October 2 that it was providing 200 billion naira to four more banks — Bank PHB, Equitorial Trust Bank, Spring Bank and Wema Bank — also judged to be facing a grave liquidity risk.

Sanusi said the economy in Africa’s biggest oil producer remained resilient. “The Nigerian economy remains resilient and the near-to-medium term outlook is positive,” Sanusi said. Last week Sanusi said Nigeria’s inflation was expected to fall below 10 percent in December, down from 10.4 percent reported in September.


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