Nigeria’s Central Bank Sets New Capital Requirements for Commercial Banks

The Central Bank of Nigeria (CBN) has increased the capital requirements for commercial banks operating within the country.

This change, announced in a press statement by Sidi Ali, the Acting Director of Corporate Communications at the CBN, aims to fortify the banking sector’s financial stability.

Under the new policy, commercial banks holding international licenses are now required to bolster their capital base to an impressive N500 billion. Meanwhile, banks with national licenses have seen their capital requirements raised to N200 billion. This strategic adjustment also extends to banks with regional licenses, which are now expected to maintain a minimum capital base of N50 billion.

The adjustment in capital requirements is part of the CBN’s broader effort to ensure a robust and resilient banking sector capable of withstanding economic challenges and supporting the nation’s growth. The policy does not solely focus on commercial banks; merchant banks are also included, with a new minimum capital threshold set at N50 billion.

Furthermore, the CBN has introduced new capital benchmarks for non-interest banks, setting the bar at N20 billion for those with national licenses and N10 billion for regional license holders.