“However, we need to ask ourselves: Will Nigerian banks have sufficient capital relative to the financial system’s needs in servicing a $1.0 trillion economy shortly? In my opinion, the answer is “No!” unless we take action. Therefore, we must make difficult decisions regarding capital adequacy. As a first step, we will be directing banks to increase their capital,’’ Nigeria’s central bank governor , Yemi Cardoso.
Yes, banks will be expected to raise more capital as the FX paralysis has neutralized their capital base. It is a poison pill: floating Naira generated massive “profits” but that process also neutralized your effective capital base in foreign currency. And now, the central bank thinks you need to raise capital.
Today, commercial banks in Nigeria require N25 billion capital base. Let us assume that the central bank doubles that to N50 billion. If that is the case, Tekedia Capital Syndicate is available to help a bank, and we will work out a great deal.
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Tekedia Capital Syndicate can invest N5 billion – N10 billion in your capitalization in any tier-2 bank with certain conditions and terms, focusing on strategy, execution, operations, etc. Principally, a BaaS (banking as a Service) strategy for the African market will be at the heart of the strategy. If you are a bank in Lagos, let us talk. Please note that we will not be passive investors; we will be active.
If you are a bank in Nigeria and getting ready on the evolving push to re-Capitalisation, by the Central Bank of Nigeria, reach out to Tekedia Capital Syndicate, we can provide up to N10 billion under mutually agreed terms
Central Bank of Nigeria Governor Olayemi Cardoso’s keynote address at CIBN dinner (full text)
If you are a bank in Nigeria and getting ready on the evolving push to re-capitalisation, by the Central Bank of Nigeria, reach out to Tekedia Capital Syndicate, we can provide up to N10 billion under mutually agreed terms https://t.co/sf2MToubam pic.twitter.com/hHuED3vbn0
— Ndubuisi Ekekwe (@ndekekwe) November 26, 2023
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