Fourteen Nigerian banks have fully met the Central Bank of Nigeria’s (CBN) new capital requirements under the ongoing recapitalisation exercise, Governor Yemi Cardoso announced Tuesday in Abuja.
Speaking at the end of the CBN’s 302nd Monetary Policy Committee (MPC) meeting, Cardoso said the milestone reflects significant progress in strengthening the financial sector.
“Members of the MPC acknowledged the significant progress in the ongoing bank recapitalisation exercise, as 14 banks have fully met the new capital requirement,” Cardoso said.
New Capital Thresholds
Under the revised framework, commercial banks with international authorisation must raise their capital base to ₦500 billion, while those with national licences must meet ₦200 billion. Commercial banks operating regionally face a ₦50 billion requirement.
Other requirements include:
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Merchant banks: ₦50 billion
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Non-interest banks (national): ₦20 billion
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Non-interest banks (regional): ₦10 billion
The recapitalisation follows the landmark 2004 exercise, when the CBN raised the minimum capital for all banks from ₦2 billion to ₦25 billion, triggering a wave of mergers that reduced the sector from 89 banks to 25.
Policy Moves
The MPC also announced key monetary policy adjustments:
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Monetary Policy Rate (MPR) lowered by 50 basis points to 27%.
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Cash Reserve Ratio (CRR) for commercial banks reduced from 50% to 45%, while merchant banks’ CRR remains at 16%.
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Liquidity Ratio held at 30%.
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A new 75% CRR introduced on non-TSA public sector deposits to strengthen liquidity management.
Cardoso said the committee’s decision to cut rates was driven by five consecutive months of disinflation, projections of further inflation decline, and the need to bolster economic recovery.
The MPC also welcomed the termination of forbearance measures and waivers on single obligor limits, a move aimed at improving transparency, risk management, and long-term stability.
“The MPC reassured the public that the impact of the removal of forbearance is transitory and does not pose any threat to the soundness and stability of the banking system,” Cardoso added.
