By Ken Afor
The Central Bank of Nigeria (CBN) has announced updated minimum capital requirements for banks, setting the minimum capital base for commercial banks with international authorization at ₦500 billion.
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, stressed that banks must comply with the new requirement within 24 months starting from April 1, 2024, until March 31, 2026.
CBN spokesperson, Hakama Sidi Ali, confirmed the development in Abuja on Thursday.
According to Ali, the CBN has revised the minimum capital base for various categories of banks.
The statement broke down the specifics indicating that banks with international authorization will need #500bn capital base. Similarly, Commercial banks with national authorization must now maintain a minimum capital base of ₦200 billion, while those with regional authorization need ₦50 billion.
Merchant banks are required to have a minimum capital of ₦50 billion, and non-interest banks with national and regional authorizations must maintain minimum capitals of ₦20 billion and ₦10 billion, respectively.
The announcement coincides with recent calls from CBN Governor, Olayemi Cardoso, urging deposit money banks to accelerate the recapitalization of their capital base to fortify the financial system.
Cardoso’s push aligns with previous statements made in November, shortly after assuming office, where he emphasized the need for commercial banks to bolster their capital base to support the ambitious $1 trillion economy goal set by the administration of President Bola Tinubu.
The last adjustment to capital requirements occurred in 2005 under the leadership of then CBN Governor, Charles Soludo, where the capital base was increased from ₦2 billion to ₦25 billion.
The full statement is attached herein for further reading and ease of reference by readers!
