As part of efforts to ensure that banks did not default in the realization of the new minimum capital base, the Central Bank of Nigeria (CBN) has requested that they submit their implementation plans to it.
The CBN said all banks are required to submit an implementation plan (clearly indicating the chosen option(s) for meeting the new capital requirement and various activities involved with their timelines) no later than April 30, 2024.
The CBN also disclosed that it would monitor and ensure compliance with the new requirements within the specified timeline.
This comes after the CBN on Thursday raised the minimum capital requirements for banks, pegging the minimum capital base for commercial banks with international authorisation at N500 billion.
A circular signed by the Director, CBN’s Financial Policy and Regulation Department, Haruna Mustafa, and directed 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.
CBN spokesperson, Hakama Sidi Ali, who confirmed the development in Abuja on Thursday, said the new minimum capital base for commercial banks with national authorisation is now N200 billion, while the new requirement for those with regional authorisation is N50 billion.
The apex bank also disclosed that the new minimum capital for merchant banks would be N50 billion, while the new requirements for non-interest banks with national and regional authorisations are N20 billion and N10 billion, respectively.
The CBN circular further said the minimum capital requirement for proposed banks shall be paid-up capital, adding that the new minimum capital requirement shall apply to all new applications for banking licences submitted after April 1, 2024.
It noted that the CBN would continue to process all pending applications for banking licences for which a capital deposit had been made and/or an Approval-in-Principle had been granted.
However, it said that the promoters of such proposed banks would make up the difference between the capital deposited with the CBN and the new capital requirement no later than March 31, 2026.
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 N2bn to N25bn.
