Di order wey di Central Bank of Nigeria (CBN) give all banks wey dey operate for di kontri say make dem recapitalise within two years to increase dia capital to N500B, don raise plenty questions for different pipo minds.
On Thursday 28 March, CBN bin raise di minimum balance for commercial banks wey get international authorisation, national spread regional banks, merchant banks, national non-interest banks and regional non-interest banks.
For commercial banks wey get international authorisation, dia capital requirement go be N500 billion. Di ones wit national authorisation gatz get N200 billion, while di ones wit regional authorisation gatz get N50 billion.
For merchant bank wey get national authorisation, na N50 billion go be dia recapitalisation requirement. Non-interest banks wey get national authorisation gatz get N20 billion, while di ones wey get regional authorisation gatz get N10 billion naira recapitalisation requirement.
All di banks get until April 2026 to upgrade dia minimum capital.
One Nigeria financial analyst, Muda Yusuf, say di purpose of dis bank recapitalisation na to make di banks strong enough to fit support bigger projects especial sectors like oil and gas and aviation.
As tins be right now, no Nigeria bank get di ability to do dis kain projects for now.
But for dis recapitalisation to work, major changes gatz to happun first and dis changes go affect many many tins including di banks demsef and dia staff wey dey work for di banks.
So, wetin dis recapitalisation mean for banks, dia staff and customers wey dia money dey bank?
Wetin e mean for banks
To reposition di banks, e mean say all banks gatz raise di new minimum capital.
But di wahala be say, many banks no go fit to meet dis new condition on dia own.
Victor Aluyi, Nigeria finance analyst, say one challenge wey di banks go face, be say dem no go fit use dia current capital, dem gatz bring fresh moni into di system.
E add say dis moni too no go fit be loan or debts, but pure capital.
For dis to happun, e get different ways wey dem go fit take raise di moni, like through right issue, offer for subscription or merger and acquisition.
But di two experts say merger and acquisition na di last tin wey any bank go wan do to raise moni.
Di reasons according to Yusuf na say small banks go suffer pass as di value of dia shares go drop.
Wit merger and acquisition, small bank workers fit lose dia job.
Bank workers
Panic full di mind of many bank workers as dem dey reason di different possibilities of wetin fit happun inside dis next two years wey banks get to increase dia minimum capital.
Di National President of di Association of Senior Staff of Banks, Insurance and Financial Institutions, Olusoji Oluwole, bin tok about some of dis worry for one interview wey im bin do wit Channels TV on Monday, 2 April.
Oluwole say based on experience wey dem bin get during di last recapitalisation wey occur for di financial sector for 2005, some banks gatz do merger and acquisition and dis seriously affect di workers.
E say dat na why dem don dey tok to CBN about dis mata wey dey worry dem.
“Wen tins happun like dis, for sure pipo go lose dia job,” im tok. Come add say, “We expect say a lot of fairness go dey for di action of banks to make sure say dem protect and compensate our members well.”
E fit affect small business
Anoda group of pipo wey dis new recapitalisation policy fit affect na small business pipo.
Yusuf say even as dis new minimum capital dey important for di economy and big banks go fit do more big big projects, e dey necessary to remember say, “small banks dey as important as big banks”.
E say di major part of Nigeria economy dey di hands of small businesses wey big banks no go wan send becos di kain projects wey dem go wan do go dey too small for big banks.
“If big banks come dey reject small business pipo, dis go affect di kontri economy no be small,” Yusuf add.
Anoda palava go also be di mata of wetin Oga Yusuf call asset bubble. Dis na di oda end of di stick.
If big bank decide to invest moni for small business and dis come make di value of di business rise veri high, wen di business no even get head reach like dat, e go palava.
Di business dey overpriced becos investors pump moni inside and not becos dem dey do anytin wey get head to make im asset cost more dan e worth.
Customers wey keep dia moni for banks
Nigerian don dey wonder weda dis new bank recapitalisation go affect dia moni in any way.
But di tin, according to Aluyi, be say dis mata no concern customers at all.
For one, di recapitalisation na to make sure say banks dey strong enough to protect dia depositors or customers moni.
No mata wetin happun, your money still dey for bank and e dey safe.
Aluyi give di example of Access and Diamond Banks merger and acquisition wey happun not many years ago as example say notin go happun to pipo moni.
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