Checkout Magazine has learnt that banks are holding a string of meetings to finalise their recapitalisation plans ahead of the April 30 deadline for the submission of their implementation strategies to the Central Bank of Nigeria (CBN).
The implementation/work plan will detail how each of the banks intends to achieve its new minimum capital requirement within the two-year timeline stipulated by the apex bank.
The details which will cover the two-year compliance period ending March 31, 2026, comprise step-by-step activities, transactional details, instruments, and other options.
The CBN last month released a circular on the review of minimum capital requirements for commercial, merchant, and non-interest banks. It increased the new minimum capital for commercial banks with international affiliations, otherwise known as mega banks, to N500 billion; commercial banks with national authorisation, N200 billion and commercial banks with regional license, N50 billion.
Others included merchant banks, N50 billion; non-interest banks with national licenses, N20 billion, and non-interest banks with regional licenses will now have N10 billion minimum capital. The 24-month timeline for compliance started yesterday and ends on March 31, 2026.
Banks’ insiders told our correspondent yesterday that directors of the banks and professional parties were making final adjustments to market-based values and timelines.
They said about one-third of banks plan to increase their capital base mainly by raising their capital adequacy, while others outline prospects for the combination of capital raise and mergers/acquisitions.
Two banks are said to be considering downgrading their licences as final options in addition to prospects of mergers and acquisitions.
While all the tier 1 banks appeared confident of raising the required funds on a stand-alone basis, they also indicated their preparedness to explore the acquisition of small banks.
