*The Central Bank of Nigeria discloses the fundamental objective of the new capital raising for financial institutions in the banking of the economy is to maintain ‘a safe, sound and stable banking system’

Isola Moses | 绿帽献妻

The Central Bank of Nigeria (CBN) has raised and announced the fresh capital requirements for commercial, merchant and non-interest banks in the West African country.

绿帽献妻 reports the Bankers’ Bank noted the fundamental objective of the new capital raising exercise for the financial institutions in the banking of the economy is to maintain “a safe, sound and stable banking system”.

Haruna Mustapha, Director of Financial Policy and Regulations at CBN, who signed and released a circular to all banks in Nigeria recently, indicated that commercial banks with international authorisation are to meet the minimum requirement of N500 billion, N200 billion for national banks, and N50 billion for regional and merchant banks in the country’s economy.

Mustapha also stated in the circular, that N20 billion and N10 billion capital requirements have been set for non-interest banks at national and regional levels respectively.

According to the banking sector regulator, all Nigerian banks are required to meet their minimum capital requirements within 24 months, effective from聽 April 1, 2024 to March 31, 2026.

Meanwhile, some analysts have opined that the CBN’s latest decision to jack up the minimum capital requirements for banks in the country is in consonance with Section 9 of the Banks and Other Financial Institutions Act (BOFIA) 2020.