charles c soludo : promoting effective and efficient customer service delivery the role of the central bank of nigeria branches opening address by professor charles c soludo, governor of the central bank of nigeria, at the 26th annual controllers ’ conference of the central bank of nigeria, held at the central bank of nigeria head office, abuja, 30 march 2005. * * * ladies and gentlemen it is my pleasure to welcome our branch controllers and guests to abuja on this occasion of the 26th annual controllers ’ conference. i wish to use this opportunity to congratulate the organisers of this unique conference which serves as a platform for interaction among the branch controllers and currency officers, and the head office staff. more importantly, as the link between the head office, the banking and host communities, this forum affords you a golden opportunity to continually update your knowledge on the recent developments in the bank and the economy, generally, as well as on the practical aspects of your assignments, so you can become better ambassadors of the bank in your respective jurisdictions. the theme of this year ’ s conference, promoting effective and efficient customer service delivery : the role of the cbn branches, is auspicious in the light of the on - going re - engineering and restructuring programme in the bank - the project eagles. the acronym eagles, as you all know, stands for efficiency, accountability, goal orientation, leadership, effectiveness, and staff motivation and is a key component of the comprehensive reform programme of the nigerian financial sector. a strong and an efficient cbn is critical for a stable and sound financial system. on july 6, 2004, i unveiled a 13 - point reform agenda for the banking sector, which included the recapitalization of the deposit money banks and their consolidation through mergers and acquisitions. the agenda is a preemptive and proactive measure to prevent a systemic crisis and collapse of the banking industry, and permanently stop the boom and burst cycles that have characterized the history of the industry. more fundamentally, the reforms are aimed at ensuring a sound, responsive, competitive and transparent banking system, appropriately suited to the demands of the nigerian economy and the challenges of globalization. i am pleased to note that so far the reform programme has received an overwhelming support from the operators, international community and other stakeholders. in our consolidation effort, 16 banks are already sure to make the new capital requirement compared to only 2 banks as at 6 july 2004. it is also good news that fresh funds are flowing into nigeria in response to the emerging investment

that is part of the global change, and which is strong, competitive and reliable. it is a banking system which depositors can trust, and investors can rely upon. evolving such a banking system is a collective responsibility of all agents in the nigerian economy. everyone has a role to play. on the part of banks, the challenges are enormous. we recognize that banks and their owners are primarily in business to make profit, and we are conscious of the need not to jeopardize this key driving motivation for innovation and entrepreneurship. however, we all know that banking system occupies a unique position in every economy and that is why it often attracts more than a casual regulatory attention. our industry in the 21st century must have a moral face and live up to some modicum of social responsibility. capitalism must have a social face and a human soul to be sustainable. this is the lesson of world history. it is in this context that we view with serious concern the spate of frauds, ethical misconduct, falsification of returns by the banks to the central bank, unprofessional use of female staff in some banks in the name of ‘ marketing ’, etc. collectively we can stop these misconducts and give the system a new face. banks are also expected to imbibe best - practice corporate governance, improve on self - regulation, enhance the capital base, institute it - driven culture, and seek to be competitive in today ’ s globalizing world. diversification of the productive base of the economy remains a fundamental challenge of economic management, and banks will increasingly be challenged to become more innovative in their intermediation function, and especially to increase financing to the productive sectors. the regulatory authorities, on their part, would further streamline the regulatory framework and strengthen the supervisory capacity to ensure a sound and efficient system. it is not enough to have a vision, we must act now. accordingly, let me share with you some of the preliminary thoughts on the major elements of the reforms by the cbn in this first phase of the banking sector reforms. we welcome your comments and suggestions before we finalize them. some of the key elements might include : ( i ) requirement that the minimum capitalization for banks should be n25 billion with full compliance before end - december 2005 ( that is, 18 months notice rather than 12 months normally given in many countries ). • only the banks that meet the requirement can hold public sector deposits, and participate in the das auction by end 2005. • publish