Central Bank of Nigeria (CBN) has announced sweeping changes to minimum capital requirements for banks.
The circular, signed by Haruna Mustafa, Director of the Financial Policy and Regulation Department, mandates commercial banks with international authorization to maintain a staggering minimum capital base of ₦500 billion.
Additionally, all banks, including commercial, merchant, and non-interest banks, must comply with the new standards within a 24-month period, starting April 1, 2024. CBN spokesperson Hakama Sidi Ali confirmed the directive, underlining the urgency of strengthening the financial system.
This development follows recent calls by CBN Governor Olayemi Cardoso for banks to expedite recapitalization efforts, aligning with President Bola Tinubu's ambitious $1 trillion economy agenda.
The move signifies the most significant adjustment to capital requirements since 2005 when the capital base was raised from ₦2 billion to ₦25 billion under the leadership of former CBN Governor Charles Soludo.
With this strategic overhaul, the CBN aims to usher in a new era of resilience and stability in Nigeria's banking industry.
