The Central Bank of Nigeria (CBN) announced in a statement that it's raising the capital threshold for operating an international bank to 500 billion naira ($359 million) from 50 billion naira previously, while lenders with in-country operations will need 200 billion naira of capital compared with 25 billion naira ($19 million) before.
CBN explained that the move will contribute to the growth of the West African country's economy.
"The prevailing macroeconomic challenges and headwinds occasioned by external and domestic shocks have underscored the need for banks to raise and maintain adequate capital to enhance their resilience, solvency and capacity to continue to support the growth of the Nigerian economy," the statement said.
The central bank also said that the minimum capital "shall comprise paid-up capital and share premium only." Lenders have been given a 24-month period, starting from April 1, to comply with the updated regulations.
All banks are required to submit an implementation plan outlining their strategies for meeting the new capital requirements, along with associated timelines, by April 30.
Central bank Governor, Olayemi Cardoso, who assumed office in September, emphasized the imperative for banks to bolster their balance sheets during his inaugural policy speech last November.
He succeeded Folashodun Shonubi, who served as acting governor of the central bank following the suspension and arrest of former governor Godwin Emefiele. In June 2023, President Tinubu suspended Emefiele amid investigations into his agency and planned reforms in the country's financial sector, targeted to enhance the economic growth of the nation.
In February, the CBN announced that Nigeria's foreign exchange market had attracted more than $1 billion after the central bank took measures to boost market liquidity and investor confidence.