September 23, 2025-Published by Cyril
The Central Bank of Nigeria (CBN) has confirmed that 14 banks have successfully met the new capital requirements under the ongoing recapitalisation exercise, aimed at strengthening the financial sector.
The disclosure was made on Tuesday in Abuja by the CBN Governor, Yemi Cardoso, while presenting the communiqué from the 302nd Monetary Policy Committee (MPC) meeting.
The apex bank had earlier announced revised minimum capital thresholds for banks based on their license categories:
- Commercial banks with international authorization – ₦500 billion
- Commercial banks with national authorization – ₦200 billion
- Commercial banks with regional authorization – ₦50 billion
- Merchant banks – ₦50 billion
- Non-interest banks (national) – ₦20 billion
- Non-interest banks (regional) – ₦10 billion
This marks the first major banking recapitalisation since 2004, when the CBN raised the minimum capital base from ₦2 billion to ₦25 billion, an action that consolidated Nigeria’s banks from 89 to 25 through mergers and acquisitions.
Cardoso noted that the MPC welcomed the progress made, urging the CBN to maintain strict oversight to ensure the successful completion of the recapitalisation exercise.
He further explained that the termination of forbearance measures and waivers on single obligors had enhanced transparency, risk management, and long-term financial stability.
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- “The MPC reassured the public that the impact of the removal of forbearance is transitory and does not pose any threat to the soundness and stability of the banking system,” Cardoso said.
In addition to recapitalisation updates, the MPC also made key monetary policy adjustments:
- Monetary Policy Rate (MPR) reduced by 50 basis points to 27% from 27.5%.
- Standing facilities corridor adjusted to +250/-250 basis points.
- Cash Reserve Ratio (CRR) for commercial banks was reduced to 45% from 50%.
- CRR for merchant banks retained at 16%.
- Liquidity Ratio kept unchanged at 30%.
- A new 75% CRR on non-TSA public sector deposits was introduced to enhance liquidity management.
The CBN governor emphasized that the rate cut was informed by five consecutive months of disinflation, with projections showing continued declining inflation through the rest of 2025, alongside a push to support economic recovery efforts.
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