The Central Bank of Nigeria has unveiled new minimum capital requirements for banks, pegging the minimum capital base for commercial banks with international authorisation at ₦500 billion.
A circular signed by the Director, Financial Policy and Regulation Department, Haruna Mustafa, to all commercial, merchant, and non-interest banks and promoters of proposed banks emphasised that all banks are required to meet the minimum capital requirement within 24 months commencing from April 1, 2024, and terminating on March 31, 2026.
CBN spokesperson, Hakama Sidi Ali, confirmed the development in Abuja on Thursday.
According to Ali, the new minimum capital base for commercial banks with national authorisation is now ₦200 billion, while the new requirement for those with regional authorisation is ₦50 billion.
The apex bank also disclosed that the new minimum capital for merchant banks would be ₦50 billion, while the new requirements for non-interest banks with national and regional authorisations are ₦20 billion and ₦10 billion, respectively.
The announcement comes just days after CBN Governor, Olayemi Cardoso, urged deposit money banks to expedite action on the recapitalisation of their capital base in order to strengthen the financial system.
Last November, Cardoso, who assumed office two months earlier, had said commercial banks in the country would be directed to increase their capital base to service a $1 trillion economy ambition of the President Bola Tinubu administration.
The last time the CBN increased capital base for banks was in 2005, when the current Anambra State Governor, Charles Soludo, was the apex bank chief. Capital base was raised from ₦2bn to ₦25bn.
Related posts:
CBN advised to raise capital base of NIRSAL-Micro Finance Banks to N100bn
CBN stipulates N5bn minimum capital requirement for service banks
CBN sets capital base of N5bn for mobile money licenses
CBN records N3.17tn deposits from 11 commercial banks in 9 months
Commercial Banks borrow N4.4trn from CBN in three months
CBN, Commercial banks sensitise Ondo residents on digital banking in Ondo
CBN sets ₦6bn minimum capital requirement for Mortgage Guarantee companies
COVID-19: FG seeks NASS approval for N500bn intervention fund
