CBN’s Acting Director Corporate Communications Mrs Hakama Sidi-Ali made this announcement in a statement in Abuja.The banks are expected to play a significant role in the attainment of $1 trillion economy projected by the Bola Ahmed Tinubu administration.The minimum capital base for commercial banks with national authorisation has been raised to N200bn, an eightfold increase from the previous N25bn.
The CBN has also outlined several strategies for banks to achieve this goal: banks can raise additional capital through private placements, rights issues or public offerings.Banks may choose to downgrade or upgrade their licenses to comply with the new capital requirements for their desired authorization level.Banks must also maintain the minimum capital adequacy ratio mandated for their specific license authorization.
However, promoters of these proposed banks “will need to bridge the gap between their deposited capital and the new requirement by March 31, 2026”. The banking sector has experienced periods of prosperity and vulnerability. The consolidation exercise of 2004, which raised the minimum capital requirement to N25 billion, is considered a turning point.
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