The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, has announced that 14 banks have successfully met the new capital requirement set under the ongoing recapitalisation exercise.
Cardoso disclosed this on Tuesday in Abuja while presenting the outcome of the 302nd Monetary Policy Committee (MPC) meeting.
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The new rules, introduced earlier by the CBN, require:
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₦500 billion minimum capital for commercial banks with international licences,
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₦200 billion for national banks,
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₦50 billion for regional banks and merchant banks,
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₦20 billion for national non-interest banks, and
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₦10 billion for regional non-interest banks.
The last major bank recapitalisation was in 2004, when the CBN raised the capital requirement from ₦2 billion to ₦25 billion. That move reduced the number of banks in Nigeria from 89 to 25 through mergers and acquisitions.
Cardoso said the MPC welcomed the progress made so far and urged the CBN to continue with policies that will ensure the recapitalisation exercise is fully completed.
He also noted that the end of special waivers and forbearance measures for banks has improved transparency, risk management, and financial stability.
At the meeting, the MPC also decided to:
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Reduce the Monetary Policy Rate (MPR) from 27.5% to 27%,
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Narrow the policy corridor to +250/-250 basis points,
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Cut the Cash Reserve Ratio (CRR) for commercial banks from 50% to 45%,
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Keep the CRR for merchant banks at 16% and liquidity ratio at 30%,
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Introduce a 75% CRR on non-TSA public sector deposits to better manage liquidity.
Cardoso explained that the decision to lower the MPR was based on declining inflation over the past five months, forecasts of further drops for the rest of 2025, and the need to support economic recovery.