The Central Bank of Nigeria has warned banks to avoid using illicit funds to raise their capital amidst the ongoing bank recapitalization exercise.
This caution was delivered during the 36th Seminar for Finance Correspondents and Business Editors, held on Monday in Abuja. The apex bank said stringent verification processes are in place to prevent dirty money from destabilising the country’s banking system.
Dr. Olubukola Akinwunmi, director of Banking Supervision at the CBN, advised financial institutions to explore legitimate and flexible capital-raising channels, including initial public offerings (IPOs), rights issues, private placements, mergers and acquisitions, and strategic foreign investments.
He noted that banks can also modify their operational scope—such as transitioning from international to commercial status—without weakening capacity, so long as they comply with regulatory expectations.
As part of the recapitalisation roadmap, the CBN has set new minimum capital thresholds:
- International commercial banks must raise at least ₦500 billion
- National commercial banks must secure ₦200 billion
- Regional commercial banks and merchant banks are required to have a minimum of ₦50 billion
- National non-interest banks must raise ₦20 billion, while regional non-interest banks need ₦10 billion
In her keynote address, Emem Usoro, CBN deputy governor noted the strategic importance of the recapitalisation effort in achieving financial system stability and advancing Nigeria’s global economic ambitions.
“As we aspire to build a global $1 trillion economy, all hands must be on deck,” Usoro said. “We must prioritise recapitalising our banks to effectively power and finance the economy, and to remain competitive with peers across the globe.”
The recapitalisation exercise commenced on April 1, 2024, and will span 24 months. It forms part of the Federal Government’s initiative to fortify the banking sector against both domestic and global shocks while positioning it to support Nigeria’s long-term economic growth targets.
