Federal Government Commends Cardoso’s Reforms, Bank Recapitalisation

Nume Ekeghe

President Bola Ahmed Tinubu has commended the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, for driving reforms aimed at restoring stability and positioning Nigeria’s economy for long-term growth.

Speaking at the inauguration of the Gateway International Airport in Ogun State recently, the President linked the ongoing bank recapitalisation exercise to broader macroeconomic reforms, describing Cardoso as focused and deliberate in his policy approach. 

Tinubu said: “I must single out one man here, Olayemi Cardoso. Thank you for all you are doing for the country. We have come a long way, and I do not disagree with his macroeconomic policies, they are delivering progress for our economy. Thank you, Yemi.”

In what amounted to a strong vote of confidence, the President underscored his trust in the CBN governor’s judgment, citing his understanding of the sequencing and execution of reforms as critical to the country’s economic reset.

Cardoso’s successful handling of the recapitalisation included the management framework for three intervention banks namely: Union Bank of Nigeria, Polaris Bank and Keystone Bank, which are yet to fully complete recapitalisation due to ongoing legal and regulatory issues. 

The banking watchdog has assured the general public that these banks are still operational, stable and capable of meeting banking requirements.

The CBN had conducted an audit, which identified material issues in the books of Union Bank. This culminated in the removal of its board and senior management in January 2024. That decision has since become the subject of litigation, with the banking regulator pursuing an appeal against a judgment that questioned the legality of the removals.

Similarly, the proposed merger between Providus Bank and Unity Bank is also facing legal huddles, which are said to be almost sorted out.

For Polaris Bank and Keystone Bank, recapitalisation is still ongoing under close regulatory watch. Both banks were earlier rescued by the CBN and are expected to complete the process once pending issues are resolved.