CBN: 14 banks fully met N500bn, N200bn, N50bn capital base requirements

The Central Bank of Nigeria (CBN) has confirmed that 14 banks have fully complied with its new minimum capital requirements under the ongoing recapitalisation programme.

CBN Governor, Yemi Cardoso, made this known on Tuesday in Abuja while presenting the communiqué from the 302nd meeting of the Monetary Policy Committee (MPC).

He explained that the recapitalisation exercise, which varies according to licence categories, has recorded significant progress.

Under the revised framework, commercial banks with international authorisation are required to maintain a capital base of ₦500 billion, while those with national licences must hold ₦200 billion.

Regional commercial banks and merchant banks each face a threshold of ₦50 billion.

Non-interest banks with national authorisation are required to meet ₦20 billion, and those with regional licences ₦10 billion.

The last major recapitalisation exercise took place in 2004, when the CBN raised the minimum capital base from ₦2 billion to ₦25 billion, a policy that triggered widespread mergers and acquisitions which cut down the number of banks from 89 to 25.

Cardoso noted that the MPC commended the progress achieved so far, urging the CBN to sustain its policies to ensure the successful completion of the current exercise.

He said the recent withdrawal of forbearance measures on single obligors has strengthened transparency, improved risk management and bolstered long-term stability in the banking system.

According to him, the committee reassured the public that the impact of this policy change is temporary and poses no threat to financial stability, price levels or domestic economic conditions.

On monetary policy decisions, the MPC reduced the Monetary Policy Rate (MPR) by 50 basis points from 27.5 per cent to 27 per cent.

Cardoso explained that the decision was informed by sustained disinflation recorded over the past five months and projections of further inflation declines for the rest of 2025, as well as the need to support economic recovery efforts.

The MPC also adjusted the standing facilities corridor to plus or minus 250 basis points around the MPR, lowered the Cash Reserve Ratio (CRR) for commercial banks from 50 to 45 per cent, retained the CRR for merchant banks at 16 per cent, and kept the liquidity ratio unchanged at 30 per cent. In addition, the committee introduced a 75 per cent CRR on non-TSA public sector deposits to strengthen liquidity management in the system.

Cardoso stressed that these measures were designed to balance the goals of price stability, financial system soundness and economic recovery.