The Central Bank of Nigeria (CBN) says it is putting in place strong verification processes to ensure that illicit funds do not destabilize the banking sector in its ongoing recapitalization drive.

During the 36th Seminar for Finance Correspondents and Business Editors that  held on Monday in Abuja, Nigeria’s capital city, the CBN also announced that it is implementing policies aimed at enhancing investment in the economy, particularly within the banking sector.

The seminar was themed “Banking Recapitalization Towards a $1 No Room for Illicit Funds in Recapitalization Drive —CBNTrillion Economy”.

The CBN Director of Banking Supervision, Dr Olubukola Akinwumi, said that the apex bank is encouraging financial institutions to explore flexible sources of capital.

Dr Akinwumi emphasized that a bank choosing to adjust its operational status, such as transitioning from an international to a commercial bank, does not indicate a weakening of its capacity.

He added that to enhance investor confidence and promote corporate governance in the banking system, the CBN remains committed to combating illicit financial flows.

He however reassured that the Nigerian banks are standing on sound footing when it comes to liquidity and they can meet depositors’ requirements  when necessary, adding that the ongoing recapitalization process will promote consolidation and innovation.