CBN Sets New Capital Requirements for Banks by 2026

During the 58th Annual Banker Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) held in Lagos on November 24, 2023, Mr. Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), hinted at a potential liquidity injection into financial institutions to raise capital thresholds.

This move is aimed at enabling the banking sector to effectively play its intermediary role in achieving President Bola Tinubu's economic goal of a $1 trillion economy by 2030. The CBN plans to announce new minimum capital requirements, which include N500 billion for commercial banks, N200 billion for international banks, and N50 billion for merchant banks.

The deadline for these new capital requirements is set for March 31, 2026. Cardoso emphasized the need for banks to increase their capital to meet financial obligations and support economic growth, as the current undercapitalization poses risks to the financial system.