Cardoso: 14 Banks Met New Capital Benchmark

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, on Tuesday disclosed that 14 Nigerian banks have so far fully met the new capital requirement under the apex bank’s ongoing recapitalisation exercise.

Cardoso made this known in Abuja while presenting the communiqué from the 302nd meeting of the Monetary Policy Committee (MPC), where he also unveiled further details of the recapitalisation programme.

He explained that commercial banks with international licences are now required to shore up their capital base to ₦500 billion, those with national authorisation must hold ₦200 billion, while regionally authorised banks must meet ₦50 billion. Merchant banks are expected to have ₦50 billion, national non-interest banks ₦20 billion, and regional non-interest banks ₦10 billion as minimum capital.

The CBN governor said members of the MPC welcomed the progress already made, noting that 14 institutions had fully complied. “They, therefore, urged the Bank to sustain the implementation of policies and initiatives that would ensure the successful completion of the ongoing recapitalisation exercise,” he said.

He further revealed that the committee noted the successful termination of forbearance measures and waivers on single obligors, a move he said was already strengthening transparency, risk management, and long-term stability in the banking sector.

While reassuring the public, Cardoso stressed that the removal of forbearance is transitory and poses no threat to the soundness of the financial system.

On monetary policy, the MPC reduced the Monetary Policy Rate (MPR) by 50 basis points to 27.00 per cent from 27.50 per cent, citing five straight months of disinflation as well as projections of further declines in inflation. It also adjusted the Standing Facilities corridor to +250/-250 basis points, revised the Cash Reserve Ratio (CRR) for commercial banks to 45 per cent from 50 per cent, retained the CRR for merchant banks at 16 per cent, and left the Liquidity Ratio unchanged at 30 per cent.

Additionally, the Committee introduced a 75 per cent CRR on non-TSA public sector deposits to strengthen liquidity management in the banking system.

Cardoso said the MPC’s decision was underpinned by the need to consolidate the gains of disinflation, safeguard macroeconomic stability, and create space for stronger economic recovery.