BREAKING: CBN to Raise Minimum Capital Base of Banks

Image

By Dipo Olowookere

The Central Bank of Nigeria (CBN) has announced that it would embark on another recapitalisation of the banking system in the country.

This information was made known on Monday morning by Governor of the CBN, Mr Godwin Emefiele, in Abuja.

The CBN chief, while unveiling his policy direction for 2019 to 2024, disclosed that the regulator will raise the minimum capital base from its present level.

Business Post reports that the last time the banking industry experienced recapitalisation was in 2004, during the tenure of Professor Chukwuma Soludo as the CBN Governor.

During the recapitalisation exercise, the minimum capital for banks operating in the country was pushed up to N25 billion from N1 billion for existing banks and N2 billion for new entrants.

The banks were then given till December 31, 2005 to meet up with the new requirement. This brought about mergers in the sector and at the end, only 25 banks made the cut.

More information later.

Share
Related Stories
Image
06-February-2024

Abbey Mortgage Bank Risk Management Strategies Yield Positive Results

By Aduragbemi Omiyale A notable real estate lender in Nigeria, Abbey Mortgage Bank Plc, has continued to show resilience despite the tough macroeconomic environment triggered by high energy costs and inflationary pressure. Its financial performance revealed that in December 2023, its net profit improved by 11.79 per cent to N856.26 million from the N766.19 million achieved in December 2022. Also, interest income surged by 49.27 per cent to N49.27 billion in the period under review from N4.83 billion in the previous year, though fees and commission income shrank by 83.15 per cent to N395.08 million. It was observed that the

Image
10-February-2024

CBN Removes Exchange Rate Band on Interbank FX Transactions

By Adedapo Adesanya The Central Bank of Nigeria (CBN) has announced a removal of the spread on foreign exchange (FX) transactions among banks, in its most adacious efforts to prop up the country’s forex market. In a notice released on Friday evening signed by Mrs Omolara Omotunde Duke, the Director of Financial Markets Department, the CBN announced it is discontinuing any cap on the spread on interbank foreign exchange transactions and restrictions on the sale of interbank proceeds. “A key objective of the ongoing foreign exchange market reforms by the Central Bank of Nigeria is to promote a market-based price

Image
16-February-2024

Ecobank Seeks Entries for International Art Exhibition +234Art

By Modupe Gbadeyanka Emerging young Nigerian artists have been invited to participate in an international art exhibition organised by Ecobank Nigeria in partnership with Soto Gallery. The 10-day event tagged +234Art, is scheduled to commence on Friday, March 22, 2024, and is dedicated to nurturing and uplifting the burgeoning art industry in Nigeria by providing a platform to support emerging artists and encourage increased interest in art acquisition, thereby contributing to the growth and prosperity of the local art sector and its international recognition. The art fair will among other things seek to create a sustainable platform for young and

Image
14-February-2024

Access Bank to Give Customers Prizes in Love is More Campaign

By Modupe Gbadeyanka Access Bank Plc has disclosed that its customers would win different prizes in its MyAccessMoreValetineStory designed to reward them for their loyalty. The campaign was launched to make the love season memorable for its valued customers, a statement from the lender explained. It stated that special Valentine’s offers, themed Love is More, were introduced during this period to spread love and financial well-being all through February. “Access Bank is committed to enhancing the financial well-being of our customers while celebrating love in all its forms. “These Valentine’s offers are a token of our appreciation for their continued

More Stories
Image
30-May-2017

Profit Taking May Lead to Initial Weakness On Wall Street

By Investors Hub The major U.S. index futures are pointing to a lower opening on Tuesday following the long holiday weekend. Traders may look to cash in on recent gains, which lifted both the Nasdaq and the S&P 500 to record closing highs last week. After trending higher for several sessions, stocks showed a lack of direction throughout the trading day on Friday. Despite the choppy trading, the Nasdaq and the S&P 500 ended the day at new record closing highs. The major averages finished the day on opposite sides of the unchanged line. The Dow edged down 2.67 points

Image
18-January-2021

2021 Budget: SERAP Proposes Pay Cut for Govt. Officials

By Ahmed Rahma The Socio-Economic Rights and Accountability Project (SERAP) has tasked the government to cut salaries and allowances of its top officials for the funding of the 2021 budget. The group, in a statement issued on Sunday, argued that this should be more ideal than the proposed sale of national assets for the purpose of financing the budget. As a result, SERAP has called on the National Assembly under the leadership of the Senate President and Speaker of the House of Representatives, Mr Ahmed Lawan and Mr Femi Gbajabiamila respectively, to stop President Muhammadu Buhari from going ahead with

Image
24-August-2019

Naira Weakens by 0.04% as Turnover Climbs to $680m Friday 

By Adedapo Adesanya  Trading ended this week on Friday August 23, 2019 at the Investors and Exporters segment of the foreign exchange market with the value of the Naira going down 13 Kobo or 0.04 percent against the dollar to trade at N363.14/$1 in contrast to N363.01/$1 it exchanged on Thursday. It was observed that weakening of the local currency was caused by the pressure on the Nigerian currency as a result of the demand for the Greenback by foreign portfolio investors, who are converting their assets. At the close of transactions on the window, the daily market turnover further

Image
27-July-2022

EU Backs Nigeria to Curb Oil Theft, Illegal Refining 

By Adedapo Adesanya The European Union (EU) has promised to work with stakeholders to help tackle Nigeria’s worrying oil theft and the illegal refining menace. This assurance was given when officials of the bloc as well as those of the Nigerian National Petroleum Company (NNPC) Limited and the Joint Task Force, under Operation Delta Safe, visited illegal refineries sites in Ahoada West Local Government Area of Rivers State for an on-the-spot assessment of the impact of their operations on the environment. The visit, according to the EU, was imperative to assess things for themselves, especially to ascertain how crude oil

Image
06-March-2019

First Bank, Access Bank CEOs Likely to be Next CBN Governor—Analysts

By Dipo Olowookere On Monday, there were rumours that Mr Godwin Emefiele had been removed as Governor of the Central Bank of Nigeria (CBN) by President Muhammadu Buhari. These rumours, which went viral on social media, forced the CBN to quickly clarify that Mr Emefiele was still in charge of the apex bank in Nigeria. Mr Emefiele, who was appointed by former President Goodluck Jonathan in 2014, will complete his first five-year term in office on June 3, 2019. However, he can be reappointed by the President for another final second term of five years. One problem is that most

Image
02-March-2020

Transparency International Suggests Ways to Tackle Illicit Financial Flows in Nigeria 

By Adedapo Adesanya Transparency International (TI) has revealed “a more efficient measures” to tackle the rate of illicit financial flows into Nigeria. The agency said out of the $50 billion in Africa, Nigeria accounts for 34 percent in the sum of $17 billion on the continent. In collaboration with the Nigeria Financial Intelligence Unit (NFIU) and the Independent Corrupt Practices and Other Related Offences Commission, the bodies have called on the Central Bank of Nigeria (CBN) to enjoin all agencies under it to help tackle this problem. The partnership called on the apex bank to regulate the operators of the

Image
23-February-2021

Naira Loses Grip on Dollar, Pound, Euro at Parallel Market Monday

By Adedapo Adesanya The week opened in a disappointing manner for the Naira against the three benchmarked foreign currencies – the US Dollar, the Pound Sterling and the Euro – at the parallel market of the foreign exchange market on Monday, February 22. At the unregulated segment of the foreign exchange market, the local currency depreciated by N3 against the greenback to finish at N480/$1 in contrast to N477/$1 of the previous session. It lost N5 against the Pound Sterling to close at N660/£1 compared to N655/£1 it traded last Friday, while it depreciated by N3 on the Euro to

Image
05-April-2020

SEC Steps up Efforts to Prosecute Ponzi Scheme Promoters

The Securities and Exchange Commission (SEC) has stepped up its regulatory oversight to ensure that promoters of Ponzi schemes in Nigeria face the full wrath of the law and their entities quickly sealed off. Acting Director General of the commission, Ms Mary Uduk, disclosed in an interview in Abuja at the weekend that her agency will also continue to work to protect investors in the nation’s capital market. She said Ponzi scheme is prohibited by the provisions of Section 38(1) of the Investments and Securities Act (ISA) 2007, stressing that the commission frowns at people not registered by SEC collecting

Ad
Ad
Recent Stories
Image
03-March-2024

Dangote Cement’s African Subsidiaries Contribute 41.2% to FY 2023 Sales

By Dipo Olowookere Dangote Cement Plc has revealed that sales from its factories outside Nigeria, its base, improved in the 2023 fiscal year by 12.7 per cent, contributing about 41.2 per cent to its total volume for the period under review, with its Nigerian operations accounting for the rest. In its audited financial statements for the year ended December 31, 2023, filed to the Nigerian Exchange (NGX) Limited, the cement maker said revenue generated from its pan-African operations increased by a record 123.2 percent to N925.9 billion, while EBITDA surged by over four-fold to N263.7 billion. Business Post reports that

Image
03-March-2024

Nigeria Pays N1trn Monthly Subsidy to Keep Petrol at N650/Litre

By Aduragbemi Omiyale Despite the federal government claiming it has stopped the payment of subsidies on premium motor spirit (PMS), well-known as petrol, more people are countering this. Recall that a few weeks ago, the International Monetary Fund (IMF) said the government had returned fuel subsidies through the backdoor and kept Nigerians in the dark about this. It then advised the government of President Bola Tinubu, which announced an end to it on May 29, 2023, to completely stop the payment as it was increasing his administration’s fiscal deficit. The global lender, in a report released last month, said the

Image
02-March-2024

JUST IN: Nollywood Star Mr Ibu Dies

By Modupe Gbadeyanka Information just reaching Business Post indicates that popular Nigerian actor, Mr John Okafor, otherwise known as Mr Ibu, is dead. It was gathered that the Nollywood star breathed his last on Saturday in a hospital in Lagos. His demise comes a day after the Nigeria film industry lost an actor, Mr Tolani Quadri Oyebamiji, well-known as Sisi Quadri. Mr Ibu underwent a surgery, which led to the amputation of one of his legs. He was later discharged from the hospital, but was reportedly taken back. Until his death, he acted in several movies. He was well known

Image
02-March-2024

African Bishops Seek Overhaul of Financial System as Debt Burden Worsens

African Catholic Bishops called for an overhaul of the financial system to address health, climate, food and other challenges the region faces. Ahead of a gathering of African Finance Ministers in Victoria Falls, Zimbabwe, the Justice, Peace and Development Commission of the Catholic Symposium of Episcopal Conferences of Africa and Madagascar (SECAM) outlined reforms for debt relief, development resources and governance. “In Sub-Saharan Africa the number of people facing food insecurity stress or crisis has more than doubled since 2019, reaching 420 million people last year,” noted the bishops in a statement. A delegation representing the African Bishops and religious

Image
02-March-2024

MTF Class of 2023 to Premiere Her Dark Past, Grown

By Modupe Gbadeyanka Two feature films will be premiered this weekend exclusively on the Africa Magic Showcase channel 151 and Africa Magic Urban channel 153 by the students of the MultiChoice Talent Factory (MTF). The two pieces of art titled Grown and Her Dark Past are the final projects of the MTF Class of 2023 students, a statement from the organisation said. The MTF is a leading film school in West Africa for young, talented and passionate filmmakers. It was established by the media platform to grow the region’s creative industry. Grown premieres on Africa Magic Showcase at 8.30 pm

Image
02-March-2024

Mandela’s Heirs Lose Power in South Africa

By Alexander Braterskiy South African authorities warn that if the opposition wins the parliamentary elections, the country may change course and leave the informal BRICS economic bloc, which includes Russia. The position of the African National Congress party, which has been in power since the collapse of apartheid, is indeed not the best, as shown by the municipal elections held earlier in the country. The opposition accuses the president of corruption and abuse of power, as well as an inability to cope with the country’s energy crisis. The ANC crisis occurred on the 30th anniversary of the first free elections

Image
02-March-2024

CAA Reaffirms Commitment to Climate Innovation for Sustainable Future

By Modupe Gbadeyanka A leading social enterprise focused on environmental sustainability, Climate Action Africa (CAA), has reaffirmed its commitment to being at the forefront of driving climate innovation for a sustainable future. The organization, which is a key participant at the four-day Omniverse Summit 2024 in Lagos, emphasised the need to integrate environmental sustainability models, technology, and community-driven innovation to address climate change challenges. It promised to foster an inclusive climate action ecosystem through innovation, which it said can be used to identify and scale solutions to address the imminent climate crisis in Nigeria and Africa as a whole, The

Image
02-March-2024

Endosurvivors Foundation Set For Another Endometriosis Awareness

By Adedapo Adesanya EndoSurvivors International Foundation (ESIF), an NGO championing endometriosis awareness in Nigeria, has announced its upcoming events in commemoration of the Global Endometriosis Advocacy Month in March, fondly tagged March4Endo by advocates all over the world.  Endometriosis is a chronic and inflammatory condition that affects approximately 1 in 10 girls and women in Nigeria and on a global scale. This sums up to about 190 million affected girls/women around the world, about the population of Nigeria in 2018.  The World Health Organisation (WHO) recognizes that endometriosis has significant social, public health, and economic implications leading to a decrease

Image
02-March-2024

CSCS, FrieslandCampina Lift NASD OTC Bourse by 0.31%

By Adedapo Adesanya The NASD Over-the-Counter (OTC) Securities Exchange returned to the positive territory after it gained 0.31 per cent on Friday, March 1, thanks to the duo of Central Securities Clearing System (CSCS) Plc and FrieslandCampina Wamco Nigeria Plc. CSCS Plc added 81 Kobo to its value to sell for N19.46 per unit compared with the preceding day’s N18.65 per unit, and FrieslandCampina improved by N1.15 to settle at N71.4o per share, in contrast to Thursday’s closing price of N70.25 per share. However, Aradel Holdings Plc continued its price depreciation yesterday as it shed N6.75 to sell at N2,395.00

Image
02-March-2024

Naira Now N1,548.25 at Official Market, N1,560/$1 at Black Market

By Adedapo Adesanya The Naira sustained its gradual recovery against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, March 1, appreciating by 2.94 per cent or N46.86 to sell at N1,548.25/$1, in contrast to the N1,595.11/$1 it was traded on Thursday. Also, in the spot market, the Nigerian currency improved its value against the Pound Sterling during the trading day by N90.13 to close at N1,956.06/£1 versus the previous day’s N2,046.19/£1 and against the Euro, it gained N76.39 to trade at N1,675.25/€1, in contrast to the N1,751.64/€1 it closed a day earlier. The supply of