CBN Says Nigeria's Financial Systems Getting Stronger
President Buhari discusses with Central Bank of Nigeria Governor Godwin Emefiele during the 4th Presidential Task Force meeting of ECOWAS on common currency for member states (file photo: State House)

The Central Bank of Nigeria (CBN) has said the country’s financial system is becoming stronger with capital buffers and liquidity in the sector improving.

Concise News understands that the CBN Governor Godwin Emefiele said this on Friday in Lagos State at the 54th Annual Bankers Dinner.

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According to Emefiele, the industry-wide Capital Adequacy Ratio (CAR) has risen from 10.2 per cent in December 2017 to 15.5 per cent in September 2019.

He noted that the percentage of non-performing loans in the banking sector has fallen from 14.7 per cent in January 2017 to under seven per cent as of October 2019.

The CBN boss added that credit conditions in the banking system have become better “by our new policy measures announced in June 2019 which requires banks to maintain a minimum 65 per cent loan to deposit ratio.

“In addition, banks are now able to recover delinquent loans from a customer’s accounts in other banks.

“As a result, gross credit increased by N1.16 trillion between May and October 2019 and this increase has been along all critical sectors of [the] economy such as manufacturing, agriculture, telecom services and the creative industry to mention a few.

“These measures have placed our banks in a much better position towards supporting a stronger economic recovery.”