The Chartered Institute of Bankers of Nigeria (CIBN) held its 2025 Annual General Meeting (AGM), during which the President/Chairman of the Council, Professor Pius Olanrewaju, addressed critical issues facing the Nigerian banking sector. One of the most pressing matters was the Central Bank of Nigeria’s (CBN) newly implemented capital thresholds for banks. Olanrewaju emphasized mergers and acquisitions (M&As) as a viable strategy for banks struggling to meet these requirements. Recognizing the difficulty some institutions might face in independently raising the necessary capital, he highlighted M&As as a means of consolidation and strengthened financial stability. This approach aligns with the CBN’s provided pathways, which also include capital raising and license changes, offering banks diverse options to comply with the new regulations by the March 2026 deadline. Olanrewaju pointed out that several banks have already successfully raised capital through rights issues, demonstrating the feasibility of this approach. He stressed the collaborative nature of M&As, emphasizing that joint efforts can yield better results than solitary struggles. This reinforces the idea that institutions choosing the M&A route can leverage collective strengths and resources to achieve compliance and maintain their operational licenses.
Olanrewaju’s advocacy for M&As resonates with the broader goal of fostering financial stability within the Nigerian banking sector. He underscored the vital role of robust financial institutions in supporting large-scale transactions, which are essential for national economic growth. This resonates with the underlying rationale behind the CBN’s capital requirements, which aim to bolster the financial strength and resilience of banks. A stable and well-capitalized banking system can effectively finance crucial infrastructure projects, support industrial expansion, and fuel technological advancements, all contributing to national economic development. By highlighting these connections, Olanrewaju emphasized the significance of the CBN’s regulations and presented M&As as a strategic tool for banks to adapt and contribute to the nation’s economic progress.
Beyond addressing regulatory compliance, the CIBN AGM also focused on youth empowerment and the role of the institute in developing future banking professionals. Olanrewaju stressed the importance of equipping young people with the necessary skills and knowledge to succeed in the evolving financial landscape. The CIBN’s Gen Z program, aimed at attracting and nurturing young talent in the banking profession, was highlighted as a successful initiative. This proactive approach to talent development signifies the CIBN’s commitment to ensuring a sustainable pipeline of skilled professionals for the future of the banking industry. By investing in youth development, the CIBN aims to foster a dynamic and adaptable workforce capable of navigating the complexities of the modern financial world.
The AGM also provided a platform to showcase the institute’s robust financial performance. The CIBN reported a 37.32% increase in total revenue for the 2024 financial year, reaching N3.82 billion compared to N2.78 billion in 2023. Dr. Peter Ashade, the National Treasurer, attributed this significant growth to various successful initiatives undertaken by the institute. The internally generated revenue also saw a substantial increase of 41.22%, rising to N3.37 billion from N2.38 billion in the previous year. This underscores the CIBN’s ability to diversify its revenue streams and adapt to prevailing economic conditions, despite the challenges posed by a high inflationary environment.
Despite the rising operational costs due to inflation, which increased by 23.99%, the CIBN achieved a notable 48.06% increase in net operating surplus, reaching N1.99 billion from N1.34 billion. This positive financial outcome demonstrates the effectiveness of the institute’s operational strategies and its ability to maintain profitability despite economic pressures. The strong financial performance reinforces the CIBN’s position as a financially sound and resilient institution. This stability is crucial for the institute to effectively carry out its mandate of promoting professionalism and building capacity within the Nigerian banking sector.
Beyond the financial overview, discussions during the AGM also touched upon crucial aspects of the CIBN’s operations. Dr. Ken Opara, the immediate past president, urged members to contribute to the Human Capital Retention Fund. This fund, established to support the banking school and human capital development, holds significant importance for the institute’s long-term growth and sustainability. The current balance of N298.46 million, while showing a modest increase from the previous year’s N292.87 million, still necessitates further contributions to effectively address the institute’s human capital development goals. This underlines the ongoing need for investment in professional development to ensure the continued growth and competence of the banking workforce. Furthermore, Mrs. Debola Osibogun, another former CIBN president suggested incorporating the development of a banking museum into the institute’s agenda. This suggestion highlights the importance of preserving and showcasing the history and evolution of banking in Nigeria, providing valuable context for current and future generations of banking professionals.
