The Central Bank of Nigeria (CBN) has confirmed that 14 commercial banks in the country have successfully complied with the new capital base requirements outlined in the ongoing recapitalisation programme.
CBN Governor, Yemi Cardoso, disclosed this in Abuja on Tuesday while presenting the communiqué from the 302nd Monetary Policy Committee (MPC) meeting.
According to the apex bank, the revised capital thresholds are aimed at strengthening the financial system and ensuring long-term stability. The last major recapitalisation exercise took place in 2004, when the minimum capital base for banks was raised from ₦2 billion to ₦25 billion. That landmark policy triggered massive mergers and acquisitions, reducing the number of banks from 89 to 25.
Breakdown of the New Capital Requirements
Under the current recapitalisation framework, the CBN has classified requirements according to licence type:
- Commercial banks with international authorisation – ₦500 billion
- Commercial banks with national authorisation – ₦200 billion
- Commercial banks with regional authorisation – ₦50 billion
- Merchant banks – ₦50 billion
- Non-interest banks (national) – ₦20 billion
- Non-interest banks (regional) – ₦10 billion
Cardoso noted that the MPC applauded the progress of the recapitalisation exercise, highlighting that 14 financial institutions have fully met the set benchmark.
“The committee urged the CBN to sustain policies and initiatives that would guarantee the successful conclusion of the recapitalisation exercise,” he said.
Strengthening Transparency and Stability
The CBN governor further explained that the MPC observed the end of forbearance measures and waivers on single obligor limits. These measures, he added, have enhanced risk management, improved transparency, and reinforced long-term financial stability in the banking sector.
The MPC also reassured the public that the impact of removing forbearance remains temporary and does not undermine the soundness of Nigeria’s banking industry or the stability of domestic prices.
Monetary Policy Adjustments
At the meeting, the MPC announced several monetary policy adjustments. The Monetary Policy Rate (MPR) was reduced by 50 basis points, moving from 27.5 percent to 27 percent. The committee also adjusted the standing facilities corridor around the MPR to +250/-250 basis points.
For liquidity management, the Cash Reserve Ratio (CRR) for commercial banks was lowered from 50 percent to 45 percent, while the CRR for merchant banks remains at 16 percent. The Liquidity Ratio was retained at 30 percent.
Additionally, a new 75 percent CRR was introduced on non-Treasury Single Account (TSA) public sector deposits, a move designed to tighten liquidity management.
Cardoso explained that the decision to ease the MPR was based on the disinflationary trend sustained over the past five months and the projections of further inflation decline throughout 2025. He stressed that the move also aligns with efforts to support Nigeria’s economic recovery drive.
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