Following the decision of the Central Bank of Nigeria (CBN) to recapitalise commercial banks in the country, the Coalition of Civil Society Organisations in the country has thrown their weight behind the plan, saying that the decision is healthy for Nigeria's economy and it will make the banks stronger, and as well attract investors.
According to them, at the last Recapitalisation, N25 billion was worth about $200 million, but the said amount is not worth $20 million today, hence the need for recapitalisation.
Addressing journalists at Ikeja, Lagos State, the spokesperson for the civil society organisations and former Chairman of the Institute of Chartered Accountants of Nigeria (ICAN), Lagos and District Society, Mr. Alesta Wilcox, said the banks in Nigeria are now weak, and its discourages investors.
He noted that recapitalisation is to make the banks healthy and stronger, arguing that when banks are healthy, they will be able to perform better and recruit more staff.
The coalition, which comprises Constitutional Rights Advocate Initiative, Cadrell Advocacy Centre, Movement for Nigeria Restructuring, Centre for Social and Economic Rights, Committee for the Protection of People's Mandates, Coalition Against Corrupt Leaders CACOL and Commonwealth Institute of Advanced and Professional Studies, noted that it's political and is only interested in the political and economic wellbeing of the country.
However, according to them, they are supporting the recapitalisation move because there are plans by some benefiting from the weakness in the banking sector to sabotage it.
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"We are a coalition of civil society organisations. Our role is to act as watchdogs to the government in the overarching interest of the Nigerian people.
"Our gathering today is to alert the federal government, the Central Bank of Nigeria (CBN), the Economic and Financial Crimes Commission (EFCC), the Department of State Services (DSS), the Bankers Committee and the Nigerian media to an organised plot by some vested interest within the Nigerian banking system to begin to orchestrate a diversionary gas-lighting campaign to stop the proposed banking sector reforms using some faceless civil society organisations who will begin to make preposterous claims and allegations against some Nigerians who critical to the success of the planned banking recapitalisation programme.
"We also have credible intelligence that they intend to make some unsubstantiated allegations against the current CBN Governor, Mr. Olayemi Cardoso; the Mr. Olawale Edun, the Finance Minister and Coordinating Minister in charge of the economy, " the coalition warned.
They further explained that some investors in the banking sector are planning to sabotage the recapitalisation, and their goal is to either delay or force the Central Bank of Nigeria to drop the ongoing reforms of the banking sector to elongate the stay of their Pay Masters at the helm of affairs at some of the sick banks which require the recapitalisation most.
"It is germane to say that some of the banks which require the recapitalisation most are the very ones in need of the injection of capital off the back of the recapitalization programme. But these vested interests would rather leave the banks in their sick state to prevent the truth from being unearthed," the civil society stated.
