Mr. Hakeem Bello-Osagie, a former Chairman of UBA, on Tuesday in Abuja applauded the CBN for reversing its policy on the N25 billion minimum capital base for banks.

Bello-Osagie told the News Agency of Nigeria (NAN) on the sideline of the launch of a Restructured Nigeria International Debt Fund that the consolidation exercise "had some positive merits but was faulty in execution.

"I do think that it's a very positive development that the CBN has now decided that they will rethink the one-size-fits-all policy of N25 billion capital base.

"I think there is a market and Nigeria needs a variety of players, some large and some small, and the key issue is adequate regulation and impartial supervision.

"With the new measure, we will be able to accommodate a wide variety of institutions, all of which will be able to contribute to the growth and development of Nigeria," he said.

The former UBA chairman said that the decision to issue licences that would accommodate multiple players was healthier for the economy, considering the peculiarity of the Nigerian market.

"I think that the consolidation had some positive merits to it but there were mistakes in its implementation and execution. I think that it is very rare that you can have a policy of one size that fits everybody," he said.

The CBN on Monday announced a new licencing regime for the banking sector that puts away the universal banking system licence and encourages a variety of players, with varying capital base.

The apex bank said the policy was still going through a process of discussions and negotiations by stakeholders.

It, however, said that it would take between 18 months and 24 months to transit all the existing licences. (NAN).