March 28, 2024
By Paschal Ijeh InvestAdvocate
The Central Bank Nigeria (CBN) Thursday announced new minimum capital requirements for banks in Nigeria, with the minimum capital base for commercial banks with international authorisation at N500 billion.
This is coming on the heels of the days after the CBN advising Nigerian banks to fast-track action on the recapitalisation of their capital base to strengthen the financial system.
Hakama Sidi Ali, Acting Director, Corporate Communications Department of the cbn in a statement Thursday said the new minimum capital base for commercial banks with national and regional authorisatios would be N200 billion and N50 billion respectively.
Sidi Ali disclosed that the new minimum capital for merchant banks would be N50 billion, while the new requirements for non-interest banks with national and regional authorisations are N20 billion and N10 billion, respectively.
In the same vein, a circular signed by Haruna Mustafa, the Director for Financial Policy and Regulation to all commercial, merchant, and non-interest banks and promoters of proposed banks stressed 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.
According to the circular, the move, initially disclosed by the CBN Governor, Olayemi Cardoso, in his address to the Annual Bankers’ Dinner in November 2023, was to enhance banks’ resilience, solvency, and capacity to continue supporting the growth of the Nigerian economy.
Click here to read full PDF copy of reviewed minimum capital requirement
