ENUGU, Nigeria (VOICE OF NAIJA)- A University don, Pailemen Ikpefan, has advised the Central Bank of Nigeria (CBN) to review the current N25 billion capital base of banks to enable them to compete favourably with their international counterparts.
Mr. 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.
According to him, reforming the financial sector remains a major tool for banking soundness.
He noted that further reviewing the minimum paid-up capital from the present N25 billion for deposit money banks would significantly enhance their performance and capacity for cross-border businesses.
“Nigerian banks need to be proactive and strategically positioned to be active and not spectators in the emerging world to meet international standards and transform the economy,” Mr. Ikpefan explained.
The university teacher added: “In addition, for Nigerian banks to play their proper role in financial services delivery, locally and internationally, the apex bank needs to improve the framework for operations of banks and non-bank financial intermediaries.”
Mr. Ikepefan said there was a need for CBN to emphasize good corporate governance to improve the performance of the Nigerian banking sector significantly and urged the regulatory authorities to embrace policies aimed at controlling inflation and prioritize fostering financial intermediation, adding that fiscal and monetary policies designed to promote output stability and sustainable growth were good for financial intermediation.
He stressed the need for banks’ management and regulatory authorities to create digital banking awareness to promote financial inclusion.
Mr. Ikpefan called on the leadership of banks to address mismanagement and fraud, which posed a great threat to the financial health of banks.