In a move aimed at strengthening the resilience of Nigeria's banking sector, the Central Bank of Nigeria (CBN) has announced significant increases in the capital base requirements for various categories of banks across the country.
According to a statement released by the CBN's Acting Director of Corporate Communications, Hakama Ali, banks with international authorization are now mandated to raise their capital base to N500 billion, while national banks must increase theirs to N200 billion.
Commercial banks with regional authorization are expected to achieve a capital base of N50 billion, while merchant banks must shore up their capital to a minimum of N50 billion as well.
Furthermore, non-interest banks with national and regional authorizations are required to boost their capital to N20 billion and N10 billion, respectively.
The CBN has set a deadline of 24 months for all banks to meet these new capital requirements, with the compliance period starting from April 1st and ending on March 31st, 2026.
This directive is expected to have significant implications for the banking industry, impacting lending practices, regulatory compliance, and overall financial stability.
Stakeholders will be closely monitoring the implementation of these new requirements and their effects on the banking landscape and the broader economy.
