MERGERS, ACQUISITIONS LOOM AS CBN PLANS BANKS’ RECAPITALIZATION
Written by Olakunle Oke on November 28, 2023
Mergers and acquisitions loom as Nigeria’s Deposit Money Banks brace for another round of recapitalization in line with the country’s $1 trillion economy target.
Last week, the Central Bank of Nigeria Governor, Olayemi Cardoso, in his speech at the 50th-anniversary dinner of the Chartered Institute of Bankers of Nigeria, CIBN, in Lagos, announced plans to recapitalize DMBs.
Cardoso said the move is crucial to test the adequacy of Nigeria’s banking industry and to achieve the objective of President Bola Ahmed Tinubu’s projected $1 trillion economy.
The development comes nearly six months after the country’s currency, the Naira, was floated against other currencies at the foreign exchange market, losing over 40 per cent of its value from N463 per USD in the official market to over 750/$1.