Breaking: CBN unveils new minimum capital requirement for Banks

The Central Bank of Nigeria, CBN, has increased the capital base for commercial banks with international authorization to N500 billion and national banks to N200 billion.

This sweeping financial reform, announced on Thursday, March 28, 2024, mandates substantial increases in the minimum capital base for banks, varying by the scope of their operations.

The latest policy directive specifies that commercial banks with international authorization are now required to shore up their capital base to N500 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 said the new minimum capital base for commercial banks with national authorisation is now N200 billion, while the new requirement for those with regional authorisation is N50 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.

READ ALSO: CBN Monetary Policy Committee announces increase in interest rate

The announcement comes just days after CBN Governor, Olayemi Cardoso urged deposit money banks to expedite action on the re-capitalization 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.

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