In order for Nigerian banks to compete favorably with their international counterparts, a Don, Prof. Ailemen Ikpefan, has advised the Central Bank of Nigeria (CBN) to reassess the present N25 billion capital basis of Nigerian banks.
Ikpefan, from the Department of Banking and Finance, College of Management and Social Sciences, Covenant University, gave the advice during the 29th Inaugural Lecture of the institution on Monday in Ota, Ogun State
He stated that reforming the financial sector remains a major tool for banking soundness.
According to the News Agency of Nigeria (NAN), the lecture was entitled: “Securing the Financial Health of Nigerian Banks Today for the Future.”
He explained that a further review of the minimum paid up capital from the present N25 billion for Deposit Money Banks would significantly enhance their performance and improve their capacity for cross border businesses.
“Nigerian banks need to be proactive and strategically positioned to be active and not spectators in the emerging world so as to meet international standards and transform the economy.
“In addition, for Nigerian banks to play their proper role in financial services delivery, locally and internationally, the apex bank needs to improve on the framework for operations of banks and non-bank financial intermediaries,” he said.
According to Ikepefan, it is important for CBN to lay more emphasis on good cooperate governance in order to significantly improve the performance of the Nigerian banking sector.
He also advised the regulatory authorities to embrace policies aimed at controlling inflation and prioritise fostering financial intermediation, adding that fiscal and monetary policies designed to promote output stability and sustainable growth were good for financial intermediation.