The Central Bank of Nigeria (CBN) has introduced revised minimum capital requirements for banks, stipulating a minimum capital base of ₦500 billion for commercial banks with international authorization.
In a circular addressed to all commercial, merchant, and non-interest banks, as well as promoters of proposed banks, the Director of the Financial Policy and Regulation Department, Haruna Mustafa, emphasized that banks must comply with the new minimum capital requirement within 24 months, starting from April 1, 2024, and ending on March 31, 2026.
CBN spokesperson, Hakama Sidi Ali, confirmed the development in Abuja on Thursday, outlining the updated capital bases for different categories of banks. Commercial banks with national authorization are now required to have a minimum capital base of ₦200 billion, while those with regional authorization must maintain a base of ₦50 billion.
Additionally, the minimum capital for merchant banks has been set at ₦50 billion, while non-interest banks with national and regional authorizations are mandated to have minimum capital bases of ₦20 billion and ₦10 billion, respectively.
This announcement follows recent calls from CBN Governor, Olayemi Cardoso, urging deposit money banks to expedite the process of recapitalizing their capital base to bolster the financial system.
In November, Cardoso, who assumed office two months earlier, articulated the directive for commercial banks in the country to enhance their capital base, aligning with the ambition of President Bola Tinubu's administration to steer Nigeria towards a $1 trillion economy. The last revision of capital base requirements for banks occurred in 2005 under the leadership of the then CBN Governor, Charles Soludo, raising the base from ₦2 billion to ₦25 billion.
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