The Central Bank of Nigeria (CBN) says 20 Nigerian banks have already met the new minimum capital requirement in the ongoing bank recapitalisation exercise.
CBN governor Yemi Cardoso made this known on Tuesday in Abuja while presenting the communiqué from the 304th meeting of the apex bank’s Monetary Policy (MPC).
In March 2024, CBN announced a major bank recapitalisation programme requiring Nigerian banks to raise higher capital bases within 24 months. This is to make the financial sector stronger, more resilient, and able to support economic growth.
The exercise began on April 1, 2024, and the deadline for full compliance is March 31, 2026.
Under the framework, banks must meet higher capital thresholds based on their licence type, and capital must be in paid-up share capital and share premium only (not reserves or retained earnings).
Commercial banks with international licences are required to raise a minimum capital of N500 billion; those with national licences have a N200 billion requirement, while those with regional licences have N50 billion.
Merchant banks have a minimum capital requirement of N50 billion.
Non-interest banks with national licences have N20 billion, and non-interest banks with regional licences have N10 billion.
According to Mr Cardoso, with regard to the ongoing recapitalisation programme, of the 33 banks that have raised additional capital, 20 have met the new minimum capital requirement.
“This has reaffirmed steady progress towards a more robust and well-capitalised financial system.
“The MPC reiterated the strategic importance of the recapitalisation exercise and urged the CBN to ensure its successful completion.
“This would reinforce financial system resilience and enhance the sector’s capacity to support sustainable economic growth, prices, and other domestic developments,” he said.
He said gross external reserves rose significantly to $50.45 billion as of February 16, the highest in 13 years.
“This provides an import cover of 9.68 months for goods and services,” he said.
(NAN)
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