By Seun Ibiyemi
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, has disclosed that 13 banks are yet to meet the new minimum capital requirement under the ongoing bank recapitalisation programme.
Cardoso made this known on Tuesday in Abuja while presenting the communiqué from the 304th meeting of the apex bank’s Monetary Policy Committee (MPC).CBN mops up $190m to slow naira rally
According to him, 20 Nigerian banks have successfully met the new capital thresholds, out of the 33 banks that have raised additional capital so far.
“With regards to the ongoing recapitalisation programme, of the 33 banks that have raised additional capital, 20 have met the new minimum capital requirement.
This has reaffirmed steady progress towards a more robust and well-capitalised financial system,” Cardoso said.
The CBN had in March 2024 announced a major recapitalisation exercise requiring banks to shore up their capital base within 24 months to strengthen the financial sector, enhance resilience, and position banks to better support economic growth.
The exercise commenced on April 1, 2024, and is scheduled to end on March 31, 2026.
Under the new framework, banks are required to meet higher capital thresholds depending on the category of their licences.
The CBN stipulated that only paid-up share capital and share premium would qualify as capital, excluding reserves and retained earnings.
Commercial banks with international licences are required to raise a minimum capital base of N500 billion. Those with national licences must meet a N200 billion requirement, while regional commercial banks are expected to raise N50 billion.SERAP sues CBN over ₦3trn allegedly unaccounted for, Including ₦629bn in Anchor Borrowers’ funds
Merchant banks are to maintain a minimum capital of N50 billion. Non-interest banks with national licences are required to raise N20 billion, while non-interest banks operating with regional licences must meet a N10 billion threshold.
Cardoso noted that the MPC reiterated the strategic importance of the recapitalisation programme and urged the apex bank to ensure its successful completion.
According to him, the exercise would reinforce the resilience of the financial system and enhance the sector’s capacity to support sustainable economic growth and price stability.
Meanwhile, the CBN governor disclosed that Nigeria’s gross external reserves rose significantly to 50.45 billion dollars as of February 16, marking the highest level in 13 years.
He said the reserve position currently provides an import cover of 9.68 months for goods and services, reflecting improved external sector stability.
