Posted by Oluyinka Akintunde, Abuja on
The Governor of the Central Bank of Nigeria, Prof. Charles Soludo, has said that 16 out of the current 89 banks in the country have met the apex bank's minimum capital requirement of N25 billion as at April 1.
The Governor of the Central Bank of Nigeria, Prof. Charles Soludo, has said that 16 out of the current 89 banks in the country have met the apex bank's minimum capital requirement of N25 billion as at April 1.
The apex bank had on July 6, 2004 directed all the banks in the country to raise their capital base from N2 billion to N25 billion on or before December 31, 2005.
He made this disclosure in a paper presented at the annual Branch Controllers' Conference of the CBN, in Abuja, last week Friday.
Soludo, in the paper which was obtained by our correspondent on Thursday, said, 'I am pleased to note that so far, the reform programme has received an overwhelming support from the operators, international community and other stakeholders. In our consolidation effort, 16 banks are already sure to make the new capital requirement compared to only two banks as at July 6, 2004.
'It is also good news that fresh funds are flowing into Nigeria in response to the emerging investment opportunities in the Nigerian banking sector as a result of the consolidation exercise. Many Memoranda of Understanding for consolidation have been signed and progress on their implementation is steady."
Though the CBN governor did not specify the 16 banks that have met the N25 billion, our correspondent gathered that the banks included: First Bank of Nigeria Plc, Zenith International Bank, Union Bank of Nigeria Plc, Afribank Nigeria Plc, Guaranty Trust Bank, Oceanic Bank International Nigeria Plc, and Intercontinental Bank, UBA/STB.
Only First Bank of Nigeria Plc and Union Bank of Nigeria Plc had on July 6, 2004, met the minimum capital requirement.
Meanwhile, Allstates Trust Bank, Lion Bank Plc, Universal Trust Bank, Hallmark Bank and Gulf Bank signed MoU on September 3, 2004 to form First Consolidated Bank. Intercontinental Bank, Equity Bank, Global Bank and Gatewaybank signed MoU on September 16 to form Intercontinental Bank Group. Manny Bank, First Atlantic, Assurance Bank, Guardian Express, have agreed to form Astra Bank; while Prudent Bank, EIB, Magnum Trust Bank, Trust Bank and NBM signed MoU to form Sterling Bank.
The CBN management, he noted, was concerned about the increasing rate of fraud in the bank in recent times.
'While we are improving processes and procedures and strengthening internal controls, we need to closely monitor the activities of staff, to achieve zero tolerance for fraud, at each branch level and bank wide.
'For the avoidance of doubt, management is firmly committed to stamping out corruption in the bank and will take every necessary measure to protect the bank's assets," he said.
The CBN governor disclosed that the bank had developed a business plan to restructure and strengthen the Nigerian Security Printing and Minting Company in order to make it a world-class competitive firm.
'Our goal is to stop importing finished banknotes within three years and to meet the banknote and security printing requirements of the Nigerian economy and those of West and Central Africa in the longer-term," he said.