 |
| Nigerian Banks Mascot. Photo Credit: www.naijabizcom.com |
In his brief address exactly on the 6th of July, 2004, the former governor of central bank of Nigeria Prof. Charles Soludo said that the banking system in Nigeria was very fragile and unstable hence with his vision of making the banking and financial sector in Nigeria to achieve a reliable and a global standard that depositors can have absolute trust upon with local and foreign investors strongly relying upon, he announced the reform of N25bilion shareholders Re-capitalization of the Nigerian banks and fixed 31st December, 2005 as the deadline which saw just 25 out of the then existing 89 banks meeting the target.
The announcement of the bank consolidation exercise sent jitters into the spine of many commercial banks then operating within the Nigeria territory. This exercise paved ways to banks who could not meet the stipulated N25billion target to either merged or become acquired by other bigger banks. This effort by the then CBN governor is still one recommendable effort that has been praised by both the local and international community that lead to massive reformation in the Nigerian banking sector both in terms of policy, customers and banking operations.
