The Central Bank of Nigeria (CBN) has announced a significant increase in the capital base requirement for commercial banks, signaling a sweeping financial reform aimed at strengthening the country’s banking sector.
The policy directive, revealed on Thursday, mandates substantial increases in the minimum capital base for banks, with varying thresholds depending on the scope of their operations.
Under the new regulations, commercial banks with international authorization are now mandated to shore up their capital base to N500 billion. Similarly, banks with national authorization must meet a minimum capital threshold of N200 billion, while those with regional authorization are expected to achieve a capital floor of N50 billion.
Mrs. Hakama Sidi Ali, the Acting Director of Corporate Communications at the CBN, confirmed the policy shift in Abuja. She emphasized the regulator’s commitment to enhancing the stability and resilience of the banking sector through these measures.
The reform measures extend beyond commercial banks to include merchant banks, which are now subject to a minimum capital requirement of N50 billion.
Additionally, non-interest banks with national authorization are required to bolster their capital to N20 billion, while those with regional authorization must maintain a minimum capital base of N10 billion.
