The Central Bank of Nigeria (CBN) has increased deposit money banks’ capital base, according to an official statement posted on its website. This is coming about 20 years after its previous adjustment in 2005.

The new minimum capital requirement for banks with international authorisation has been pegged at ₦500 billion, a circular signed by the Director of Financial Policy and Regulation Department, Haruna Mustafa revealed.

The apex bank stated that all commercial, merchant, and non-interest banks and promoters of proposed banks emphasised that all banks are required to meet the minimum capital requirement within 24 months commencing from April 1, 2024, and terminating on March 31, 2026.

According to Ali, the new minimum capital base for commercial banks with national authorisation is now ₦200 billion, while the new requirement for those with regional authorisation is ₦50 billion.

The apex bank also disclosed that the new minimum capital for merchant banks would be ₦50 billion, while the new requirements for non-interest banks with national and regional authorisations are ₦20 billion and ₦10 billion, respectively.

The announcement comes just days after CBN Governor, Olayemi Cardoso, urged deposit money banks to expedite action on the recapitalisation of their capital base in order to strengthen the financial system.

Last November, Cardoso, who assumed office two months earlier, had said commercial banks in the country would be directed to increase their capital base to service a $1 trillion economic ambition of the President Bola Tinubu administration.

The last time the CBN increased the capital base for banks was in 2005, when the current Anambra State Governor, Charles Soludo, was the apex bank chief.