June 5, 2024.
Thank you for reading this post, don't forget to subscribe!Azonuchechi Chukwu.
Nigerian lenders have begun submitting plans to meet new minimum capital requirements aimed at strengthening the financial system and supporting economic growth, according to the Central Bank of Nigeria (CBN). The new standard, set in March, mandates that commercial banks with international authorization must have at least 500 billion naira ($344.83 million) in capital. Over 20 Nigerian banks need to raise additional capital within two years to comply with this threshold.
**Top Nigerian Banks Announce Capital Raising Plans to Meet CBN Requirements**
Three of Nigeria’s leading banks, Guaranty Trust Holding Plc, Access Corp, and FBN Holdings, have announced plans to raise capital in response to the CBN’s new minimum capital requirements. This move comes as the central bank emphasizes the need for extra buffers, especially after significant devaluations in the naira currency since June last year.
**CBN Reviews Implementation Plans for Banking Sector Recapitalization**
The CBN has started reviewing implementation plans submitted by banks for the recapitalization program. “Our banks have begun submitting implementation plans for the banking sector recapitalization program in compliance with the CBN Circular reviewing the minimum capital requirements for commercial, merchant, and non-interest banks,” said central bank spokesperson Hakama Sidi Ali.
**Economic Challenges Drive CBN’s Call for Higher Capital Buffers**
The Nigerian economy has faced high inflation and low growth for a decade, with recent government measures to boost growth exacerbating these issues. The CBN has highlighted the importance of extra capital buffers for banks to navigate these economic challenges and support the financial system.
**Labour Unions Suspend Strike Amidst Ongoing Wage Negotiations**
Labour unions in Nigeria suspended a strike on Tuesday after failing to reach an agreement with the government on a new minimum wage. The unions have warned that the strike will resume in a week if no wage agreement is reached, highlighting the ongoing economic pressures facing Nigerian workers.
**CBN Refutes Speculation of Revoking More Banking Licenses**
Following the revocation of Heritage Bank Plc’s license on Monday for rule breaches, the CBN on Tuesday refuted media speculation that it plans to revoke the licenses of three other lenders. The central bank’s actions are part of broader efforts to ensure stability and compliance within the financial sector.(www.naija247news.com).
