The Global News reports that the Central Bank of Nigeria (CBN) has announced new minimum capital requirements for all banks operating in the country.
Hakama Sidi-Ali, the spokesperson for the CBN disclosed this in a statement in Abuja on Thursday.
Ali stated that the updated minimum capital base for commercial banks holding national authorization is now set at ₦200 billion, with regional authorization banks required to maintain a minimum of ₦50 billion.
Additionally, the Central Bank revealed that the minimum capital requirement for merchant banks has been raised to ₦50 billion. Furthermore, non-interest banks holding national authorization must maintain a minimum capital of ₦20 billion, while those with regional authorization are required to have a minimum capital of ₦10 billion.
Banks are required to meet the minimum capital base by March 31, 2026.
The step marks a turning point in Nigeria’s banking history.
Banks are expected to play a significant role in the attainment of the $1 trillion economy projection of the Bola Ahmed Tinubu Administration.
The banks have been given opportunity of two years to jack up their capital base with March 31, 2026 as deadline.
However, CBN also advised banks on how they can achieve to achieve the new capital base requirements.
The apex bank listed the measures to include raising additional additional capital through private placements, rights issues or public offerings, consolidation through mergers and acquisitions and downgrade or upgrade of their licenses for their desired authorization level.