The Central Bank of Nigeria (CBN) said on Friday that 30 banks have reached the new minimum capital levels it set for the industry.

The bank disclosed this in a statement signed by the bank’s Acting Director of Corporate Communications, Hakama Sidi Ali.

The CBN said the recapitalisation programme is “progressing steadily.” 

It said that 33 banks raised extra money through rights issues, initial public offerings (IPOs) and private placements. 

The remaining banks are still going through the CBN’s normal checks, and final confirmation of compliance is expected soon.

The CBN first announced the new rules on March 28, 2024 and banks were given two years, from April 1, 2024 to March 31, 2026 to meet up. 

This is the first big increase in capital requirements since 2004, when the minimum was pegged at N25 billion.

The new levels ( paid-up capital + share premium) are much higher;  N500 billion for international, N200 billion for national, and N50 billion for regional commercial banks; Merchant Banks N50 billion and Non-Interest Banks N20 billion (national) and N10 billion (regional).

The CBN made the change because the old capital was no longer enough after years of high inflation and sharp falls in the value of the naira. 

The goal is to make banks stronger, more stable and better able to lend to businesses and people. This will help Nigeria reach its target of growing the economy to 1 trillion US dollars by 2030.

Nigeria has 33 banks covered by the directive.

The CBN said the entire banking system “remains stable and sound.” 

It also promised to keep working closely with the banks to make sure everyone meets the rules on time. 

The statement said, “The recapitalisation programme remains firmly on track and will further strengthen the capacity of the banking sector to support households, businesses, and sustainable economic growth.”

Any bank that does not reach its target by then may have to either merge with a stronger bank, change its licence to a smaller type (for example, move from serving the whole country to only one region) or be taken over by another bank.

The CBN made it clear that no bank would be allowed to collapse in a way that puts customers’ money at risk. People’s deposits are safe either way.

    Earlier, the CBN governor, Olayemi Cardoso, at the close of the 304th Monetary Policy Committee (MPC) media briefing, on February 24, said that 20 banks had met the new minimum capital requirements.

He added that additional that 13 banks were at advanced stages of their capital-raising processes and expected to finalise within the stipulated timeframe.

Mr Cardoso added that institutions still finalising their plans were considering diverse strategic options, including consolidation where suitable, to meet the deadline.

The CBN governor stated that as of February 19, the total verified and approved capital raised under the programme was N4.05 trillion.

He gave a breakdown that N2.90 trillion (71.67 per cent) was mobilised domestically, while 706.84 million dollars, estimated at N1.15 trillion (28.33 per cent), reflected foreign participation.

He explained that the balanced mix signalled broad investor engagement and growing confidence in the sector.

Mr Cardoso also discussed the status of institutions currently under regulatory intervention, saying that specific legal and structural factors influence the order of recapitalisation measures for the banks.