The Central Bank of Nigeria (CBN) has unveiled new capital requirements for banks, mandating 25 banks in Nigeria to raise approximately N3.89 trillion in fresh capital to meet the new minimum capital base.
This move aligns with the CBN's efforts to strengthen the banking sector in line with the nation's economic targets.
The new requirements include a steep increase in the capital base for commercial, non-interest, and merchant banks. Commercial banks with international licenses must have a capital base of N500 billion, while national and regional counterparts need N200 billion and N50 billion, respectively.
Additionally, non-interest banks and merchant banks face increased capital base requirements. While some banks already meet the new criteria, others must consider mergers, acquisitions, or raising capital from the market.
Experts emphasize the need for caution to prevent the infiltration of illicit funds and ensure effective supervision post-recapitalization.
Despite challenges, stakeholders anticipate positive impacts on the economy, including increased foreign direct investment and a more robust financial system.
The recapitalization process unfolds amid discussions on its implications for job security, market stability, and overall economic growth.
