“I think in general, this was a fantastic decision by the Central Bank [of Nigeria] as it allows for transparency,” Mukuru told CNBC Africa.
(WATCH VIDEO: The implications of devaluation of the naira)
“If you take a step back and think of yourself as a bank manager or bank owner, you were already working on devaluation as you were not operating on the official exchange rate,” he added.
Mukuru added that the devaluation was not news to any of the bank managers adding that this would however increase pressure on the asset quality.
“If you look at how we were forecasting this year, we were expecting to see the provisions that the bank were supposed to make on the asset quality, to increase by 200 basis points which is huge in our sector,” said Mukuru.
“What is important to understand is that the managers and investors were working towards getting closer to the parallel market rate so this move is one step closer to that.”
Analysts say companies importing petroleum products and manufacturing companies are likely to be affected the most due to inflationary pressures.
(WATCH VIDEO: Investors worried about devaluation of naira)
“The banks have been talking to those most at risk to convert their dollar loans into naira loans to workout repayment schedules,” said Mukuru.
“We should not be too quick to look at this as having a tremendous effect though the economy will clearly be hurt by the move.”
Mukuru said he was confident that the banks will be able to survive these trying times.