CBN raises commercial banks capital to N500bn, others

The Central Bank of Nigeria, on Thursday, raised the minimum capital requirement of commercial banks with international authorization to N500bn.

It disclosed this in a Circular with the number, FPR/DIR/PUB/ClR/0021009’, to all commercial, merchant and non-interest banks; and promoters of proposed banks, titled ‘Review of minimum capital requirements for commercial, merchant, and non-interest banks in Nigeria’.

The circular was signed by the Director, Financial Policy and Regulation Department, CBN, Haruna Mustafa.

According to the circular, commercial banks with national authorization’s new capital was raised to N200bn; commercial banks with regional authorization is now N50bn; merchant banks with national authorization is N50bn; Non-interest bank with national authorization is N20bn, and Non-interest bank with regional authorization is N10bn.

The circular read, “The prevailing macroeconomic challenges and headwinds occasioned by external and domestic shocks have underscored the need for banks to raise and maintain adequate capital to enhance their resilience, solvency and capacity to continue to support the growth of the Nigerian economy.

“Consequently, in furtherance of its statutory responsibility to promote a safe, sound and stable banking system and in line with Section 9 of the Banks and Other Financial Institutions Act (BOFIA) 2020, the Central Bank of Nigeria (CBN) hereby announces an upward review of the minimum capital requirements for commercial, merchant and non-interest banks in Nigeria as follows.”

To meet the minimum capital requirements, the CBN stated that banks may consider any of the following options: Inject fresh equity capital through private placements, rights issue and/or offer for subscription; mergers and acquisitions and/or; upgrade or downgrade of license authorization.

The banks were given 24 months to meet the new minimum requirement, commencing from April 1, 2024, till March 31, 2026.