Nigeria’s Central Bank has raised the capital base of commercial banks with international authorisations to 500 billion Naira and of national banks to 200 billion Naira.
This massive reform, which was announced on March 28, 2024, requires banks to increase their Minimum Capital Bases in a variety of ways depending on the nature of their operations, according to nairametrics.
According to the latest policy directive, it is now necessary to raise the capital base of commercial banks with international authorisations to N500 billion.
The CBN’s Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, confirmed the policy shift in Abuja, further detailing that national authorization commercial banks need to meet an N200 billion threshold, while those with regional authorization are expected to achieve an N50 billion capital floor.
The CBN has not overlooked merchant banks, which are currently subject to a minimum capital requirement of N50 billion, in efforts to tighten the financial situation.
Furthermore, non-interest banks with national and regional authorizations will need to bolster their capital to N20 billion and N10 billion respectively.
In addition, the Central Bank stressed that all banks are required to meet a minimum capital requirement within 24 months beginning on April 1, 2024, and ending on March 31, 2026.
