The Central Bank of Nigeria has announced that 14 Nigerian banks have fully met the new capital requirement in the ongoing recapitalization exercise.
CBN Governor Yemi Cardoso disclosed this while presenting a communiqué from the 302nd meeting of the Monetary Policy Committee in Abuja.
The CBN had introduced a new minimum capital base requirement for banks, with tiers depending on license type.
Commercial banks with international authorization now have a new capital requirement of N500 billion, while those with national authorization have N200 billion, and regional authorization have N50 billion.
The MPC also decided to reduce the Monetary Policy Rate by 50 basis points to 27% from 27.50%. According to Cardoso, the committee’s decision to lower the MPR was predicated on the sustained disinflation recorded in the past five months and projections of declining inflation for the rest of 2025.
The CBN also adjusted the standing facilities corridor around the MPR to +250/-250 basis points and adjusted the Cash Reserve Ratio for commercial banks to 45% from 50%.
The Nigeria Employers’ Consultative Association has lauded the CBN’s decision to reduce the MPR. NECA’s Director-General, Adewale-Smatt Oyerinde, said the modest reduction was a welcome move in light of the sustained decline in inflation.
“For over five months, inflationary pressures have eased. This provides critical space for policymakers to balance the pursuit of price stability with the urgent need to stimulate growth,” Oyerinde said.
However, Oyerinde warned that the benefits would only be felt if the decision translates effectively into the real economy.
“If credit costs are lowered, businesses can access affordable financing, expand investments, and create jobs. However, the persistently high CRR and other liquidity restrictions risk limiting these intended outcomes,” he cautioned.
The Centre for the Promotion of Private Enterprise also commended the CBN’s decision, saying it marks a significant policy shift toward supporting growth and investment.
