Lawyers, Accountants, Stockbrokers, Investment Banks, and Regulators to benefit from CBN’s new capital raise

Some financial experts have expressed excitement that the Central Bank of Nigeria (CBN) capital base increment for commercial banks will inject a renewed sense of vigor into the activities of market participants. 

In an exclusive interview with ThePressNG, these experts highlighted the potential benefit of CBN’s new capital raise to market participants such as Lawyers, Accountants, Stockbrokers, Investment Banks, and Regulators. 

They noted that the recapitalization will lead to a general shake-up in the economy which would ginger activities of all market operators and also bring back foreign investors. 

Nairametirics reported that the CBN’s Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, confirmed the policy shift in Abuja, further detailing that national authorization commercial banks need to meet a N200 billion threshold, while those with regional authorization are expected to achieve a N50 billion capital floor. 

The CBN also emphasized that all banks are required to meet the minimum capital requirement within 24 months commencing from April 1, 2024, and terminating on March 31, 2026 

The Vice Chairman of the Board at Highcap Securities Limited, Mr. David Adonri reacting to the development in an exclusive interview with ThePressNG said that for the primary regulators – the CBN, the Nigeria Deposit Insurance Corporation (NDIC), and the Securities and Exchange Commission (SEC) – the prospect of a well-capitalized banking industry was akin to a sigh of relief. 

He noted that with banks fortified by increased capital reserves, these regulatory bodies could rest assured, knowing that the financial institutions they oversaw were better equipped to weather economic storms. 

He noted that market operators, including solicitors, accountants, stockbrokers, and investment banks, stand poised on the brink of opportunity. 

Adonri noted that participation in the recapitalization process is not only a matter of service but also a source of significant revenue for market operators. 

Adonri noted that ultimately, the investing public will benefit from the increased number of shares that will be available for them to trade. 

Mr. Mike Eze, the Group Managing Director of Crane Securities Limited said for market participants such as stockbrokers, fund managers, and auditors, a recapitalization injects a renewed sense of vigor into their activities. 

Eze noted that with banks fortified by increased capital reserves, liquidity flows more freely through the market, greasing the wheels of transactions and investments. 

Eze noted that the recapitalization serves as a catalyst for a general shake-up in the economy adding that as banks strengthen their financial foundations, they are better positioned to extend credit and support economic growth. 

Eze noted that recapitalization exerts a magnetic pull on foreign investors, luring them back into the market with the promise of stability and opportunity. 

According to him, strengthened banks instill confidence in international investors, who view Nigeria’s financial landscape as a more attractive destination for capital deployment.