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CBN raises banks’ minimum capital base to N500bn

The Central Bank of Nigeria has raised the minimum capital requirement for all banks operating in the country to N500 billion.

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.

Banks with regional authorisation now require a minimum capital base of N50bn compared to the prior N10 billion.

The minimum capital requirement for merchant banks has been set at N50 billion.

The new minimum capital for non-interest banks with national and regional authorisations are N20 billion and N10 billion respectively.

The new requirements will come into effect on April 1, 2024 with a two-year window for compliance.

Banks are required to meet the minimum capital base by March 31, 2026.