The Central Bank of Nigeria on Thursday 28 March, 2024 announced a new minimum share capital for commercial banks, increasing it from N50 billion to N500 billion 100% increase, representing 100% increase.
This will lead to recapitalisation of all the commercial banks' capital base to strengthen the banking sector and the financial system.
In a statement released in Abuja by the apex bank's Acting Director, Corporate Communications, Mrs. Sidi Ali the minimum capital base are categorized according to the level operations licenses by the banks.
Banks with international authorisation will now require N500 billion, those with national authorisation will require N200 billion, while those will regional authorization will need N50 billion mimium capital base.
"The new minimum capital base for commercial banks with national authorisation is now N200bn, while the new requirement for those with regional authorisation is N50bn," Sidi Ali said
There are currently 26 commercial banks in Nigeria. These deposit money banks operate as international, national or regional banks depending on types of licence issued to them by Central Bank of Nigeria inline with the Banking and Other Financial Institutions Act (BOFIA) 2010
No bank is authorized to carry out banking business in Nigeria except one licensed under any of the following categories:
- commercial banks,
- merchant banks and
- specialised banks (this includes non-interest banks, mortgage banks, microfinance banks, development banks)
A commercial bank may be licensed to operate as regional, national, or international bank in compliance with rules, regulations and guidelines on licensing, authorization, operation and conduct of business which CBN issues from time to time.
International Commercial Banks
A bank with an international commercial banking licence is permitted to operate across 36 states of the country and the FCT, and also outside Nigeria.
However, the foreign countries such bank chooses to extend its operations are subject to the approval of the CBN and the host country. The paid-up capital required for this level according to BOFIA is ₦50 billion, which has now been reviewed upward to N500 billion.
National Commercial Banks
A National commercial bank is licensed to operate across all the states of the federation including FCT, and should have at least one branch in each state. BOFIA provides that any financial institution seeking to be licensed as national commercial bank shall have minimum of N25 billion initial paid-up capital, which the CBN has raised to N200 billion.
Regional Commercial Banks
Regional commercial bank licence allows the bank to operate in a minimum of 6 states and a maximum of 12 states with a paid-up capital of ₦10 billion, now N50 billion.
Top 10 Bank Commercial Banks in Nigeria, Their Current Share Capital, and Shares to Raise to Meet Up N500 Billion Share Capital
1. Access Bank
Share Capital: N251.812bn
CBN Target: N500bn
Minimum Capital to Raise: N248.188bn
2. EcoBank
Current Share Capital: N353.513bn
CBN Target: N500bn
Minimum Capital to Raise: 146.487bn
3. First Bank Holdings
Current Share Capital: N251.340bn
CBN Target: N500bn
Minimum Capital to Raise: N248.660
4. FCMB
Current Share Capital: N125.294bn
CBN Target: N500bn
Minimum Capital to Raise: N374.706bn
5. Fidelity
Current Share Capital: N115.305bn
CBN Target: N500
Minimum Capital to Raise: N384.695bn
6. GTCO
Current Share Capital: N138.187
CBN Target: N500bn
Minimum Capital to Raise: N362.813bn
7. Stanbic IBTC
Current Share Capital: N109.259bn
CBN Target: N200bn
Minimum Capital to Raise: N90.741bn
Sterling Bank
Current Share Capital: N57.154bn
CBN Target: N200bn
Minimum Capital to Raise: N142.864bn
UBA
Current Share Capital: N115.815bn
CBN Target: N500bn
Minimum Capital to Raise: N384.185bn
Zenith Bank
Current Share Capital: N270.745bn
CBN Target: N500bn
Minimum Capital to Raise: N229.255bn
