The Central Bank of Nigeria has reviewed the capital requirement for commercial, merchant and non-interest banks Nigeria.
The new minimum capital requirement for Commercial Banks with international license has been increased to N500 billion. Commercial Banks with National License now have minimum capital requirement of N200 billion while Commercial Banks with Regional License have a minimum capital requirement of N50 billion.
Merchant Banks now have minimum capital requirement of N50 billion.
For non- interest Banks, the minimum capital requirement for those operating with National License is N50 billion while those with Regional License have minimum capital requirement of N10 billion.
According to CBN, the prevailing macroeconomic challenges and headwinds occasioned by external and domestic shocks have underscored the need for banks to raise and maintain adequate capital to enhance their resilience, solvency and capacity to continue to support the growth of the Nigerian economy.
To meet up with the minimum capital requirement, banks may consider any of the following options:
- Inject fresh equity capital through private placement, rights issue and/or offer for subscription
- Mergers and Acquisitions
- Upgrade or downgrade of license authorization
Banks are required to meet up with the minimum capital requirement within a period of 24 months commencing from April 1, 2024 and terminating on March 31, 2026.