The New Banking Sector Recapitalization Programme 2024- What You Need To Know

The Banking Sector Regulation Programme is a regulatory initiative of the Central Bank of Nigeria (CBN) that requires banks operating in Nigeria, to increase their minimum paid-in common equity capital to a specified amount according to their license category and authorization within a specified timeframe. Further to this Programme, on March 28, 2024, the CBN issued a Circular to all Commercial, Merchant and Non-Interest Banks; and Promoters of Proposed Banks mandating these entities to review their Minimum Capital Requirements in Nigeria. According to the CBN, this review became necessary due to the prevailing macroeconomic challenges, stemming from both external and domestic factors that have continued to affect the Nigerian economy at a broad level and by increasing the minimum capital requirements, the CBN aims to ensure banks have a robust capital base to absorb unexpected losses and capacity to continue to contribute to the growth and development of the