No Nigerian bank is undercapitalised – CBN


The director, Banking Supervision, Tokunbo Martins, told journalists at the end of the Bankers Committee Meeting in Lagos on Wednesday that there was no truth in the report.

The News Agency of Nigeria (NAN) reports a Dubai-based International Investment Bank, Arqaam Capital, had reported that seven Nigerian banks were undercapitalised to the tune of N1tn about 3.2 billion dollars.

The stress test by Arqaam Capital also reported that two banks were close to being insolvent.

Mr. Martins said commercial banks were facing some challenges that were not peculiar to Nigeria, adding that Non Performing Loans (NPL) at 11 per cent was not the focus for now.

“As Director Banking Supervision, I wish to state that the report that seven banks are undercapitalised is not true.

“That our banks have non-performing loans at 11 per cent is not the focus for now. We should totally ignore such a story,’’ Mr. Martins said.

The director said that commercial banks in the country had huge capacity to generate income to absorb any losses that could arise from such loans.

“The fact that a country has non-performing loans at this period is expected. So, I don’t think that any jurisdiction should be demonised because of NPL,’’ Martins said.



Now available on

Premium Times Android mobile application Premium Times iOS mobile application
Premium Times windows mobile application Premium Times blackberry mobile application

TEXT AD: Discover!! New Solution Helps Men Get Bigger Penis To 7inch without Side Effect size and Last 25minutes+ During Sex Click Here To Read...

All rights reserved. This material and any other material on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from PREMIUM TIMES.