By Onu Okorie
The Central Bank of Nigeria (CBN) has raised the minimum capital requirements for commercial Deposit Money Banks DMB with international authorisation to ₦500 billion.
This was made known in a circular signed by the Director, Financial Policy and Regulation Department, Haruna Mustafa on Thursday in Abuja. He also said that 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.
Speaking on the development, CBN spokesperson Hakama Sidi Ali 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.
