01/04/2024
Flash🛎: The first move was to relocate the Banking Supervisory Dept of the CBN from Abuja where there’s not one commercial bank headquarters to Lagos where all commercial banks have their headquarters.
Then, the recapitalisation order where no bank is allowed to divert its profit to capital base and that will be properly monitored by the Banking Supervisory Dept of the Central Bank which is now located in the same Lagos where the banks’ headquarters are domiciled.
These banks will as from Tuesday have to strategise on how to meet up with this requirement. The truth of the matter is that dollars kept by their big owners will have to be brought out to raise the capital base. They will have to look for foreign investors too and since backlog of valid forex have been settled, they’ll be eager to bring their dollars to Nigeria.
The President knew that he'd request for a massive recapitalization before he cleared all outstanding valid forex backlog.
But the banks’ minimum capital is not in dollar so they will have to convert their dollars to naira if the banks want to remain in business. I have told us several times that this war to safe our currency is multidimensional but only a few agreed with me.
I do not think that the cards to checkmate forex banditry are all yet laid on the table. This President is a money person, he’s a financial engineer and he’s well grounded. Those who think that it’s game as usual should start to have a rethink if they don’t want to go bankrupt due to their inherent greed.
