NewStats: 3,261,865 , 8,175,398 topics. Date: Friday, 30 May 2025 at 08:13 PM 6182l

The Central Bank of Nigeria (CBN) has unveiled new minimum capital requirements for banks, pegging the minimum capital base for commercial banks with international authorisation at ₦500 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.

According to Ali, the new minimum capital base for commercial banks with national authorisation is now ₦200 billion, while the new requirement for those with regional authorisation is ₦50 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.

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

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.

https://www.channelstv.com/2024/03/28/breaking-cbn-pegs-minimum-capital-base-for-banks-at-n500bn/amp/

The likes of wema and unity bank might become regional banks again.

500 Kini

All our commercial banks will have to source for more capital including investment from foreign partners. This will bring more forex into the country and strengthen the banking system. The positive impact will flow to the capital market and other associated organizations. This is super bullish for the country.

Paraman:
The likes of wema and unity bank might become regional banks again.

Who told you Wema bank can’t raise the new N500b capital base?

seunmsg:


Who told you Wema bank can’t raise the new N500b capital base?

we shall see

Adequate capital levels enable banks to attract funding, build strong customer relationships, and effectively manage risks associated with lending. This promotes greater market discipline and ultimately reduces the likelihood and severity of financial crises.

seunmsg:


Who told you Wema bank can’t raise the new N500b capital base?

Wema is not international, so it will only need to raise its capital to N200b. That's still a lot for Wema.

When I said in the other thread that buffoons have taken power in Nigeria, it seemed like I was just hating on Tinubu government but it’s the truth.

Or tell me what this particular policy is meant to achieve.

Explain it to me like I’m in nursery school.


In the end, what they will achieve is that banks come together and merge together so they can get the 500billion naira base capital. That’s how we will end up having about just 5 commercial banks remaining.

So, ultimately they will end up shrinking Nigerians’ choices and leaving us at the mercy of just few banks who will treat us as they like because our options are limited.

If you disagree with this, then tell me the advantages of this policy.

I’ll wait

This will force some consolidation but given the macro conditions at the moment might not be the best time for the rebase.

Penguin2:
When I said in the other thread that buffoons have taken power in Nigeria, it seemed like I was just hating on Tinubu government but it’s the truth.

Or tell me what this particular policy is meant to achieve.

Explain it to me like I’m in nursery school.


In the end, what they will achieve is that banks come together and merge together so they can get the 500billion naira base capital. That’s how we will end up having about just 5 commercial banks remaining.

So, ultimately they will end up shrinking Nigerians’ choices and leaving us at the mercy of just few banks who will treat us as they like because our options are limited.

If you disagree with this, then tell me the advantages of this policy.

I’ll wait

Mop up most of the funds stolen by certain people. Force those who took funds out to repatriate them as a way of cleaning the funds. Attract more foreign investors who want to make money from our economy. Making the banks stronger and competitive. Get them to be involved in the core practice of banking instead of funding rubbish.

emkz:


Mop up most of the funds stolen by certain people. Force those who took funds out to repatriate them as a way of cleaning the funds. Attract more foreign investors who want to make money from our economy. Making the banks stronger and competitive. Get them to be involved in the core practice of banking instead of funding rubbish.

How would having about 5 commercial banks with 500billion naira capital base attract investment?

Penguin2:
When I said in the other thread that buffoons have taken power in Nigeria, it seemed like I was just hating on Tinubu government but it’s the truth.

Or tell me what this particular policy is meant to achieve.

Explain it to me like I’m in nursery school.


In the end, what they will achieve is that banks come together and merge together so they can get the 500billion naira base capital. That’s how we will end up having about just 5 commercial banks remaining.

So, ultimately they will end up shrinking Nigerians’ choices and leaving us at the mercy of just few banks who will treat us as they like because our options are limited.

If you disagree with this, then tell me the advantages of this policy.

I’ll wait

there is never a choice in the first place. There was never were. Do you think you live in the sixties or you think it's just a Nigeria thing?

Paraman:
The likes of wema and unity bank might become regional banks again.

I think is only for those who operate at international level...dox which h are active in other countries

Penguin2:

How would having about 5 commercial banks with 500billion naira capital base attract investment?

Only banks with international accreditation would need 500 billion naira. Others with national accreditation need 200 billion while regional banks need 50 billion naira.

With 500 billion naira funds as capital base, the bank is seen as very strong, and systemically important to the country and continent. With such strength, they can mobilize more deposits from more customers, capture the unbanked population, and that means they may attract more investors to take loans for business, mortgage, auto, fees and so on; or buy more shares and they'd be able to mobilize high ticket loans which servicing can give them more profits and shareholders are happy.

Corporate governance and internal controls would be more stringent. The era of bank MDs living like kings would also be over because people who have put their funds into those banks as investors would put them under pressure.

Penguin2:
When I said in the other thread that buffoons have taken power in Nigeria, it seemed like I was just hating on Tinubu government but it’s the truth.

Or tell me what this particular policy is meant to achieve.

Explain it to me like I’m in nursery school.


In the end, what they will achieve is that banks come together and merge together so they can get the 500billion naira base capital. That’s how we will end up having about just 5 commercial banks remaining.

So, ultimately they will end up shrinking Nigerians’ choices and leaving us at the mercy of just few banks who will treat us as they like because our options are limited.

If you disagree with this, then tell me the advantages of this policy.

I’ll wait

Sharap, why must you always be negative every time?

Oversized bird, way siddon tied for kitchen dey wait make water boil, make they take am use am cook make penguin stew, wan claim say em know CBN?

2004 CBN Recapitalisation exercise
- Twenty-five banks emerged from 75 banks, out of a total of 89 banks that existed as at June 2004.

- Licenses of 14 banks were revoked for failure to meet recapitalisation conditions

African Express Bank
AllStates Trust Bank
Assurance Bank of Nigeria
City Express Bank
Eagle Bank
Fortune International Bank
Gulf Bank
Hallmark Bank
Lead Bank
Liberty Bank
Metropolitan Bank
Societe Generale Bank
Trade Bank
Triumph Bank

- Lucky 25 after injection of capital or Merger & Acquisition deals

1. Access Bank
2. Afribank
3. Diamond Bank
4. EcoBank
5. Equitorial Trust Bank
6. First City Monument Bank
7. Fidelity Bank
8. First Bank Plc
9. First Inland Bank
10. Guaranty Trust Bank
11. IBTC-Chartered Bank
12. Intercontinental Bank
13. Nigeria International Bank
14. Oceanic Bank
15. Platinum Bank
16. Skye Bank
17. Spring Bank
18. Stanbic Bank
19. Standard Chartered Bank
20. United Bank of Africa
21. Sterling Bank
22. Union Bank
23. Unity Bank
24. Wema Bank
25. Zenith Bank Plc

https://www.cbn.gov.ng/out/speeches/2006/govadd%2016-1-06.pdf

Penguin2:
When I said in the other thread that buffoons have taken power in Nigeria, it seemed like I was just hating on Tinubu government but it’s the truth.

Or tell me what this particular policy is meant to achieve.

Explain it to me like I’m in nursery school.


In the end, what they will achieve is that banks come together and merge together so they can get the 500billion naira base capital. That’s how we will end up having about just 5 commercial banks remaining.

So, ultimately they will end up shrinking Nigerians’ choices and leaving us at the mercy of just few banks who will treat us as they like because our options are limited.

If you disagree with this, then tell me the advantages of this policy.

I’ll wait

Just shut up if you don't know what to say.

Now, the banks will be in a mad, desperate rush to have Naira thereby mopping up excess liquidity from the system.

The Naira will then appreciate!

Here to read comments

Banks will now have to seat up and buckle their belt to meet target

$380m


Meanwhile how would you classify providus Bank?

Will that make them give loans freely? Especially to MSMEs?

Whatever strengthen the Economy

season of unnecessary deductions are here.

Kloenboi:
How would you classify providus Bank?

500b is easy to actualize as a bank. Just do abracadabra with ya customer N100 - 1k

Ok

N500 billion naira = > US$ 350 million

N200 billion naira. = > US$ 150 million


Tall order!

The banks have till March 31st, 2026 to comply
with the CBN’s directive.

Overall, I believe the merits of this policy out weigh
the demerits.

Chai liability target

Kloenboi:
How would you classify providus Bank?

Regional bank