The Central Bank of Nigeria (CBN) has issued a new circular raising the minimum capital base for merchant banks, a move aimed at strengthening resilience in a volatile global environment and ensuring specialized banks can back large-scale projects.
Affected institutions have a 12-month window to meet the revised thresholds, with the CBN framing the directive as part of positioning Nigerian banks for cross-border competitiveness under the AfCFTA framework.
Analysts expect the policy to trigger consolidation through mergers and acquisitions among smaller merchant banks, as the regulator insists the transition will be managed to avoid service disruptions.
Echotitbits take: This looks like phase two of the recapitalization agenda that began in 2024. By forcing merchant banks to scale, the CBN is signaling it wants fewer but stronger institutions capable of financing industrial projects rather than just trading. Watch for fresh capital-raise announcements on the NGX.
Source: The Punch – https://punchng.com/banks-strengthen-capital-base-as-cbn-tightens-controls-2/ 2026-01-27
Photo Credit: The Punch
