Former President Olusegun Obasanjo has advocated appropriate fiscal and monetary policy synergy that would help revolutionise the banking industry and achieve economic stability.
At the unveiling of the book titled ‘The Power of One Man: How the Soludo-Engineered Consolidation Transformed Nigerian Banks to Global Players’, exactly 20 years after the revolutionary banking consolidation held in Lagos on Saturday, Obasanjo said there is a need for the fiscal authority to have a representative from the Central Bank of Nigeria (CBN) in their team of policy formulation.
The book, written by Ray Echebiri, captured the Nigerian economy, the events that led to 2004/2005 banking consolidations and lessons from the exercise.
Obasanjo, who was represented by former Governor of Cross River state, Donald Duke, said although the apex bank is expected to be an independent entity, appropriate consultations are needed from both authorities to ensure speedy economic growth and stability.
He applauded the courage of the Governor of Anambra State, Professor Charles Soludo, for initiating and implementing the 2004/2005 banking consolidation that strengthened the nation’s banking industry and bolstered banks’ ability to finance the private sector and long-term projects in Nigeria.
Also speaking, Lagos State Governor, Babajide Sanwo-Olu, lamented that the country is now facing some of the challenges that led to the 2004 banking reform. He urged the CBN to do everything within its power to ensure economic stability, especially in the areas of interest rate and inflation management.
He pointed out that the private sector is currently going through tough times with the myriad of challenges facing the nation’s economy.
“It is very tough for us in the private sector at this time, I do not know how we are going to survive. I know it is temporary but a whole lot of pressure is on all of us. You need to do something painstaking to see how they survived in the previous reform”, he said.
In his remarks, CBN Governor, Olayemi Cardoso, described Soludo’s banking reform as a bold step that revolutionalised the banking sector from N2 billion capital base to N25 billion.
Cardoso, who was represented by the Deputy Governor, Financial Systems Stability, Phillip Ikeazor, said the apex bank is committed to ensuring stronger, healthier and resilient banks capable of withstanding economic shocks.
According to Cardoso, Nigerian banks’ GDP weigh behind when compared with peers in other African countries, adding that the exercise would strengthen the banks and make it so robust enough to meet expected headwinds.
Prof Soludo, in his remarks, stated that the banking reform was successful due to the determination of the team to put aside self-interest and ethnic sentiments to make sacrifices for the country.
He urged the leadership of the CBN to be more resolute in their decision-making to ensure the success of the forthcoming recapitalisation exercise.
“You must be resolute to pay the price, it is a dangerous gamble, it is a war. There will be work to be done for the CBN, we will keep reviewing and recapitalising because as the economy continues to enlarge, there will be a need for big banks that will champion big multinationals. We can achieve it if we dream it,” he said.