The Central Bank of Nigeria (CBN) has increased the minimum capital base of banks to N500 billion.
The CBN in disclosed this in a circular titled, “Review of minimum capital requirements for commercial, merchant and non-interest banks _in Nigeria”, issued to all commercial, Merchant and non-interest banks; and promoters of proposed banks on Thursday.
It reads: “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
The apex bank said the minimum capital for commercial International bank is N500 billion, while commercial national Bank is pegged at N200 billion, commercial regional bank is pegged at N50 billion.
Also, CBN pegged Merchant National Bank at N50 billion, Non-interest National Bank at N20 billion and Regional non-interest Ban at 10 billion.
The Banking Sector Recapitalization Programme (the Programme) is a regulatory initiative of the CBN that requires banks to increase their minimum paid-in common equity capital to a specified amount according to their license category and authorization within a specified period of time.
The Programme became necessary to further strengthen Nigerian banks against external and domestic shocks as well as enhance the stability of the financial system.
By increasing the minimum capital requirements, the CBN aims to ensure banks have a robust capital base to absorb unexpected losses and capacity to contribute to the growth and development of the Nigerian economy.