CBN Headquarters, Abuja

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 on Tuesday in Abuja.

Speaking at the end of the CBN’s 302nd Monetary Policy Committee (MPC) meeting, Cardoso said the achievement reflects “significant progress in strengthening the financial sector.”

New Capital Thresholds

Under the revised framework, commercial banks with international licences must raise their capital base to ₦500 billion, while those with national authorisation must meet ₦200 billion. Regional commercial banks face a ₦50 billion requirement.

Other requirements include:

  • Merchant banks: ₦50 billion

  • Non-interest banks (national): ₦20 billion

  • Non-interest banks (regional): ₦10 billion

The recapitalisation, the largest since 2004 when minimum capital was raised from ₦2 billion to ₦25 billion, is expected to reshape the banking landscape and consolidate sector stability.

Policy Moves

The MPC also introduced several policy adjustments:

  • Monetary Policy Rate (MPR): reduced by 50 basis points to 27%.

  • Cash Reserve Ratio (CRR): lowered to 45% for commercial banks, retained at 16% for merchant banks.

  • Liquidity Ratio: maintained at 30%.

  • CRR on non-TSA public sector deposits: set at 75% to tighten liquidity management.

Cardoso explained that the rate cut was guided by five consecutive months of disinflation, a positive outlook for further inflation easing, and the need to support economic recovery.

The committee also ended forbearance measures and waivers on single obligor limits, moves aimed at bolstering transparency, risk management, and long-term financial 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 said.