CBN Governor, Yemi Cardoso
Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, has revealed that 14 banks have successfully complied with the apex bank’s revised capital requirements as part of the ongoing banking sector recapitalisation.
Speaking in Abuja on Tuesday during the presentation of the communiqué from the 302nd Monetary Policy Committee (MPC) meeting, Cardoso highlighted the progress made so far in strengthening the capital base of Nigerian banks.
The News Agency of Nigeria (NAN) earlier reported that the CBN’s recapitalisation policy introduced new minimum capital thresholds, based on the licence categories of banks.
The revised structure sets the capital requirement for commercial banks with international licences at ₦500 billion, while those with national and regional licences are to meet ₦200 billion and ₦50 billion respectively. Merchant banks are required to hold ₦50 billion, while non-interest banks must meet ₦20 billion (national) and ₦10 billion (regional).
According to Cardoso, “Members of the MPC acknowledged the significant progress in the ongoing bank recapitalisation exercise, as 14 banks have fully met the new capital requirement.”
He added that the Committee encouraged the CBN to maintain momentum in implementing the policies needed to ensure the exercise concludes successfully.
Cardoso also addressed the conclusion of forbearance measures and waivers on single obligors, which he said have bolstered financial transparency and strengthened risk management practices.
“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, price, and other domestic developments,” he stated.
The CBN Governor also announced several monetary policy adjustments.
Notably, the Monetary Policy Rate (MPR) was reduced by 50 basis points, from 27.5% to 27%, reflecting sustained disinflation trends over the past five months.
Additionally, the MPC adjusted the asymmetric corridor around the MPR to +250/-250 basis points. The Cash Reserve Ratio (CRR) for commercial banks was revised downward from 50% to 45%, while the CRR for merchant banks remains at 16%. The Liquidity Ratio was held steady at 30%.
To enhance liquidity management, Cardoso said, “The committee introduced a 75 per cent CRR on non-TSA public sector deposits.”
He noted that the policy decisions were informed by projected declines in inflation through the remainder of 2025, and the need to support ongoing economic recovery efforts.
The last major recapitalisation in Nigeria’s banking history occurred in 2004 when the CBN, under then-Governor Charles Soludo, raised the minimum capital base from ₦2 billion to ₦25 billion. That bold move reshaped the financial landscape, shrinking the number of banks from 89 to 25 through a wave of mergers and acquisitions.
NAN
