The Central Bank of Nigeria (CBN) has confirmed that 14 commercial banks have successfully met the new minimum capital requirements set under its ongoing recapitalisation programme.
This disclosure was made by the CBN Governor, Olayemi Cardoso, on Tuesday in Abuja during the presentation of the communiqué from the 302nd meeting of the Monetary Policy Committee (MPC).
Cardoso explained that the recapitalisation drive, which introduced new capital base thresholds across banking licence categories, has already recorded significant compliance.
He noted that commercial banks with international authorisation must now maintain a minimum of N500 billion, those with national authorisation are required to hold N200 billion, while regional banks must secure N50 billion. Merchant banks are also expected to maintain N50 billion, national non-interest banks N20 billion, and regional non-interest banks N10 billion.
He recalled that Nigeria’s last major recapitalisation exercise took place in 2004 under then-CBN Governor Charles Soludo, when banks were mandated to raise their minimum capital from N2 billion to N25 billion.
That process reduced the number of banks in the country from 89 to 25 through mergers and acquisitions.
The governor said MPC members commended the progress so far and urged the apex bank to sustain policies that will ensure a smooth conclusion of the exercise before the set deadline.
At the same meeting, the MPC announced a reduction in the Monetary Policy Rate (MPR) by 50 basis points, bringing it down from 27.5 percent to 27 percent.
The decision, according to the committee, was informed by sustained disinflation recorded over the past five months and projections that inflation would continue to decline in the remaining part of 2025.
The MPC also retained the asymmetric corridor around the MPR at +250/-250 basis points.
Other resolutions include: adjusting the Cash Reserve Ratio (CRR) for commercial banks to 45 percent while maintaining 16 percent for merchant banks, introducing a 75 percent CRR on non-Treasury Single Account (non-TSA) public sector deposits, and keeping the liquidity ratio unchanged at 30 percent.
In its communique, the MPC highlighted several encouraging economic indicators. Nigeria’s headline inflation dropped to 20.12 percent in August 2025 from 21.88 percent in July. On a month-on-month basis, headline inflation eased sharply to 0.74 percent in August from 1.99 percent in July.
Core inflation moderated to 20.33 percent from 21.33 percent, while food inflation slowed to 21.87 percent from 22.74 percent, reflecting price declines in staples such as rice, maize, millet, and guinea corn.
The committee further noted that real GDP growth strengthened to 4.23 percent in Q2 2025, compared to 3.13 percent in Q1.
The oil sector, in particular, rebounded strongly, recording 20.46 percent growth against 1.87 percent in the previous quarter, boosting foreign reserves and helping to stabilise the exchange rate.
Nigeria’s external reserves were reported at $43.05 billion as of September 11, 2025, providing 8.28 months of import cover. Similarly, the current account balance recorded a surplus of $5.28 billion in Q2, higher than the $2.85 billion surplus in Q1.
The MPC attributed the downward inflation trend to a combination of tighter monetary policy, exchange rate stability, higher capital inflows, improved crude oil production, and moderated pump prices of Premium Motor Spirit (PMS).
However, the committee warned that excess liquidity in the banking system, largely driven by increased fiscal spending from higher government revenues, posed risks to macroeconomic stability.
To mitigate this, the CBN widened the standing facilities corridor to enhance interbank transactions and strengthen monetary policy transmission.
It also urged the continuation of reforms aimed at deepening the foreign exchange market, attracting capital inflows, and safeguarding transparency in banking operations, particularly with the termination of forbearance measures on single obligor limits.
On the global stage, the MPC observed that recovery prospects remain supported by ongoing trade negotiations and policy easing in advanced economies. Nonetheless, geopolitical tensions and supply chain disruptions remain potential risks.
Looking ahead, the CBN projects continued disinflation in the coming months, supported by harvest season food supplies, exchange rate stability, and lagged effects of previous monetary tightening.
The committee stressed that sustaining security improvements would be vital for boosting oil output and food production.
The MPC reaffirmed its commitment to price stability and to adopting data-driven policies to sustain growth momentum. Its next meeting is scheduled for November 24–25, 2025.
