More
    HomeBusinessMinimum Capital Base For Banks Now N50 Bn, N200 Bn, And ₦500Bn...

    Minimum Capital Base For Banks Now N50 Bn, N200 Bn, And ₦500Bn Respectively—CBN

    Published on

    …they must meet this within 24 months

    The Central Bank of Nigeria (CBN) has raised the minimum capital requirements for banks, pegging the minimum capital base for commercial banks with international authorisation at ₦500 billion.

    According to 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 April 1, 2024, and terminating on March 31, 2026.

    Hakama Sidi Ali, CBN spokesperson, confirmed the development in Abuja on Thursday.

    She said the new minimum capital base for commercial banks with national authorisation is now ₦200 billion, while the new requirement for those with regional authorisation is ₦50 billion.

    The apex bank also disclosed that the new minimum capital for merchant banks would be ₦50 billion, while the new requirements for non-interest banks with national and regional authorisations are ₦20 billion and ₦10 billion, respectively.

    It would be recalled that the CBN governor Olayemi Cardoso had advised banks during the meeting of the Monetary Policy Committee (MPC)that they should strive to raise their minimum 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 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.

    Latest articles

    NNPC Ltd Hits 1.8mbpd Oil Production, Eyes 2mbpd by Year-End

    By Hosea Parah, Abuja The Nigerian National Petroleum Company Limited (NNPC Ltd) has announced a...

    Adebayo Inaugurates Endowment/Welfare Fund For NUJ Warri

    Mr Sola Adebayo, renowned Journalist and Chief Executive Officer (CEO), Lawal Iyanda Farms Limited...

    Police Service Commission Deploys Monitors for Ondo Governorship Election Security

      By Hosea Parah, Abuja The Police Service Commission (PSC) has deployed staff monitors to Ondo...

    Kogi traditional medicine practitioners laud Ododo over workers’ welfare

      Olu Samuel, Lokoja Members of the Traditional Medicine Practitioners Association in Kabba/Bunu Local Government Area...

    More like this

    NNPC Ltd Hits 1.8mbpd Oil Production, Eyes 2mbpd by Year-End

    By Hosea Parah, Abuja The Nigerian National Petroleum Company Limited (NNPC Ltd) has announced a...

    Adebayo Inaugurates Endowment/Welfare Fund For NUJ Warri

    Mr Sola Adebayo, renowned Journalist and Chief Executive Officer (CEO), Lawal Iyanda Farms Limited...

    Police Service Commission Deploys Monitors for Ondo Governorship Election Security

      By Hosea Parah, Abuja The Police Service Commission (PSC) has deployed staff monitors to Ondo...