Overview

The document is an inaugural address by Professor Charles Soludo, Governor of the Central Bank of Nigeria (CBN), delivered on June 16, 2005, at the inauguration of the Consultative Committee on Banking Sector Consolidation. The address outlines the background, objectives, terms of reference, and expected benefits of the committee. The consolidation program, announced on July 6, 2004, is a key part of a 13-point banking industry reform agenda aimed at strengthening Nigerian banks and enhancing their competitiveness internationally. The major requirement is for banks to achieve a minimum capital base of N25 billion by December 31, 2005. Despite initial resistance, progress has been made. The high-level committee includes principal stakeholders from the financial sector and fiscal authorities, tasked with periodic review of the reform progress, addressing critical issues, and making recommendations to the CBN Board and the Presidency. The proposed terms of reference include securing stakeholder cooperation, agreeing on incentives (such as concessions on stamp duties, merger fees, listing fees, and tax allowances), facilitating legal issues, proposing loan write-offs, and suggesting amendments to guidelines or relevant acts. The committee is deemed necessary due to the banking industry's crucial role in economic growth.

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