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ARTICLE · 20 JANUARY 2025

Regulatory Update: Increase In The Minimum Share Capital Requirements For Banks

Tope Adebayo LP
Tope Adebayo LP
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The Central Bank of Nigeria (CBN) recently unveiled the Banking Sector Recapitalization Programme 2024 (the "Programme") which mandates commercial, merchant, and non-interest banks to increase their minimum paid-in common equity capital before 31st March 2026.

NigeriaFinance and Banking
Ifeoma Ezeribe
Ifeoma Ezeribe
Oluchi Nwaizim
Oluchi Nwaizim
Tolulope Oguntade
Tolulope Oguntade
Gbenga Ogundoye
Gbenga Ogundoye
Azeezat Ogunsola
Azeezat Ogunsola
Excellent Epelle
Excellent Epelle
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Introduction

The Central Bank of Nigeria (CBN) recently unveiled the Banking Sector Recapitalization Programme 2024 (the "Programme") which mandates commercial, merchant, and non-interest banks to increase their minimum paid-in common equity capital before 31st March 2026. This marks the first increase since 2004 and aims to enhance the resilience, solvency, and stability of banks with the overarching goal of supporting the achievement of a US$1 trillion Nigerian economy by 2030.

Here, we highlight the new minimum capital requirements for the affected banks, recapitalization options available and key considerations and implications arising from the Programme.

New Minimum Capital Requirements (MCR)

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