ABUJA — The Central Bank of Nigeria (CBN) has announced that 14 Nigerian banks have fully met the new capital requirements under the ongoing recapitalisation exercise.
CBN Governor, Yemi Cardoso, disclosed this on Tuesday while presenting the communiqué from the 302nd Monetary Policy Committee (MPC) meeting in Abuja.
The apex bank also cut the Monetary Policy Rate (MPR) by 50 basis points from 27.5% to 27%, marking the first reduction in three years.
Banking Sector Recapitalisation
The recapitalisation policy sets new minimum capital thresholds depending on licence categories:
- N500bn for commercial banks with international authorisation.
- N200bn for national commercial banks.
- N50bn for regional commercial and merchant banks.
- N20bn for national non-interest banks.
- N10bn for regional non-interest banks.
The last major recapitalisation exercise was in 2004, which raised minimum capital from N2bn to N25bn, forcing mergers that cut the number of banks from 89 to 25.
According to Cardoso, the MPC urged the CBN to maintain reforms to ensure successful completion of the 2025 exercise. He stressed that the removal of forbearance measures would boost risk management, transparency, and long-term stability in the sector.
Policy Adjustments
The MPC announced several key monetary adjustments:
- MPR reduced from 27.5% to 27%.
- Cash Reserve Ratio (CRR) for commercial banks adjusted to 45% (from 50%).
- CRR for merchant banks retained at 16%.
- A new 75% CRR on non-TSA public sector deposits introduced to manage excess liquidity.
- Liquidity ratio held steady at 30%.
Cardoso said the rate cut was based on five consecutive months of disinflation and projections of further decline in inflation through 2025.
External Reserves Hit $43bn
The CBN governor revealed that Nigeria’s external reserves rose to $43.05bn as of September 11, 2025, up from $40.51bn in July. This represents an import cover of 8.28 months.
The second-quarter 2025 current account balance also recorded a $5.28bn surplus, compared to $2.85bn in Q1.
Stakeholder Reactions
- NECA (Nigeria Employers’ Consultative Association): Director-General Adewale-Smatt Oyerinde praised the MPR cut, saying it could help ease business financing and stimulate growth. However, he warned that persistently high food inflation, at 21.87%, continues to strain households.
- CPPE (Centre for the Promotion of Private Enterprise): CEO Dr. Muda Yusuf described the credit easing as a timely shift from aggressive tightening, highlighting the new 75% CRR on non-TSA deposits as a safeguard against liquidity risks.
- ASBON (Association of Small Business Owners of Nigeria): President Dr. Femi Egbesola said the MPR cut was a positive sign but cautioned that its impact would not be immediate, as borrowing costs remain high.
- Market Analysts: David Adonri of Highcap Securities warned that insecurity and global commodity volatility could undermine the policy’s sustainability.
Outlook
The CBN insists that the reforms, combined with stable exchange rates, improved growth, and robust reserves, provide room for monetary policy to support recovery. However, stakeholders stress that fiscal and structural reforms remain critical to ensure that households and businesses feel the impact.
