First Bank, Access Bank, Zenith Bank, Others Get New Minimum Capital Base Requirement
THE Central Bank of Nigeria (CBN) has unveiled a new minimum capital base for money deposit banks (otherwise known as commercial banks) in Nigeria.
According to the CBN, the new minimum capital base for commercial banks with international authorisation is now Five Hundred Billion Naira (N500,000,000,000.00).
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 1 April 2024 and terminating on 31 March 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 Two Hundred Billion Naira (₦200,000,000,000.00) while the new requirement for those with regional authorisation is Fifty Billion Naira (₦50,000,000,000.00).
The apex bank also disclosed that the new minimum capital for merchant banks would be
Fifty Billion Naira (₦50,000,000,000.00), while the new requirements for non-interest banks with national and regional authorisations are Twenty Billion Naira (₦20,000,000,000.00) and Ten Billion Naira ₦10,000,000,000.00), 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 administration.
The last time the CBN increased the 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.
Eighteen-Eleven Media
