The International Monetary Fund (IMF) has commended the move by the Central Bank of Nigeria (CBN) to increase the minimum capital for banks in the country even as it projected that the Consumer Price Index which measures inflation in the country is expected to end this year at 24 per cent.
This was stated in the Fund’s Executive Board Conclusion of 2024 Article IV Consultation with Nigeria just released.
According to the IMF, CPI in the country is expected to average 26.3 this year and 23 per cent next year. Emphasising the importance of close monitoring of financial sector risks, directors at the Fund said they supported the increase in the minimum capital for banks and urged the CBN to unwind the regulatory forbearance introduced during the pandemic.
The directors also acknowledged the recent improvements in the AML/CFT framework and called for sustained action to exit the FATF grey list. They supported the authorities’ efforts to foster financial inclusion and deepen the capital market. IMF directors highlighted the importance of reforms to enhance the business environment, improve security, implement key governance measures, develop human capital, boost agricultural productivity, and build climate resilience.
