by Nurat Uthman
New minimum capital requirements for banks were announced by Nigeria’s central bank on Thursday in an effort to fortify the nation’s financial system and increase the resilience of institutions.
According to the Central Bank of Nigeria, commercial banks having international authorisation are required to maintain a minimum capital base of 500 billion naira, or $353,32 million.
The central bank said that it is also establishing a new minimum capital base of 200 billion naira for commercial banks with national permission and 50 billion naira for those with regional authorization.
The central bank stated that it is pushing banks to think about possibilities including new equity capital infusions, mergers and acquisitions, and upgrading or lowering licence approvals in order to assist them achieve the new capital criteria.
The banks have two years to meet the new capital requirements, the statement said.
Inflation in Nigeria is above 30% at an annual rate, the highest in almost three decades, fanning a cost-of-living crisis that has left millions of people in Africa’s most populous nation struggling to meet basic needs.
