14 banks fully met new capital requirements – CBN

•As CBN reduces interest rate to 27% •External reserve hit $43bn

•NECA demands reforms to ease cost of living crisis

•CBN’s easing of credit conditions a welcome, timely intervention – CPPE

By Emma Ujah, Abuja Bureau Chief, Peter Egwuatu, Victor Ahiuma-Young & Yinka Kolawole

ABUJA—Governor of the Central Bank of Nigeria, CBN, Yemi Cardoso, said yesterday that 14 Nigerian banks have fully met the new capital requirement in the ongoing recapitalisation exercise.

Cardoso disclosed this while presenting a communiqué from the 302nd meeting of Monetary Policy Committee, MPC, of the CBN in Abuja yesterday.

This is even as the apex bank reduced Monetary Policy Rate, MPR, by 50 basis points from 27.5 per cent to 27 percent, just as private operators commend the action and called for more reforms to ease the cost of living for Nigerians.

Recall that the CBN introduced a new minimum capital base requirement for banks, with tiers depending on licence type.

Before then, the last major bank recapitalisation exercise in Nigeria was in 2004, when the CBN raised the minimum capital requirement for all banks from N2 billion to N25 billion.

This was a significant increase that led to a major consolidation in the banking sector, as the number of banks was reduced from 89 to 25 through a series of mergers and acquisitions.

In the current recapitalisation exercise, commercial banks with international authorisation now have a new capital requirement of N500 billion.

Commercial banks with national authorisation have N200 billion as capital requirement, and commercial banks with regional authorisation have N50 billion.

Merchant banks have a requirementof N50 billion, non-interest banks (national) N20 billion and non-interest banks (regional), N10 billion.

According to Cardoso, members of the MPC acknowledged the significant progress in the ongoing bank recapitalisation exercise, as 14 banks have fully met the new capital requirement.

“They, therefore, urged the CBN to continue the implementation of policies and initiatives that would ensure the successful completion of the ongoing recapitalisation exercise,” he said.

He said the committee further noted the successful termination of forbearance measures and waivers on single obligors, which had helped to promote transparency, risk management and long-term financial stability in the banking system.

Cardoso said: “The MPC reassured the public that the impact of the removal of forbearance is transitory and does not pose any threat to the soundness and stability of the banking system, price, and other domestic developments.”

He had earlier announced the decision of the MPC to reduce the Monetary Policy Rate, MPR, by 50 basis points to 27 per cent from 27.50 per cent.

The committee also adjust the standing facilities corridor around the MPR to +250/- 250 basis points and adjusted the Cash Reserve Ratio (CRR) for commercial banks to 45 per cent from 50 per cent.

It, however, retained the CRR for merchant banks at 16 per cent, while keeping the Liquidity Ratio unchanged at 30 per cent.

According to the CBN governor, the committee introduced a 75 per cent CRR on non-TSA public sector deposits to enhance liquidity management. He said that the committee’s decision to lower the MPR was predicated on the sustained disinflation recorded in the past five months.

He said that the decision was also informed by projections of declining inflation for the rest of 2025 and the need to support economic recovery efforts.

On reduction of interest rate to 27%, Cardoso said the committee decided to “reduce the MPR by 50 basis points to 27%; adjust the standing facilities corridor around the MPR to +250 /- 250 basis points, adjust the Cash Reserve Requirements, CRR, for commercial banks to 45%, while retaining that of merchant banks at 16%.”

He said the CBN decided to introduce a 75% CRR on non-Treasury Single Account, TSA, public sector deposits and keep the liquidity ratio unchanged at 30 per cent.

According to Mr. Cardoso, the decision to lower the monetary policy rate was predicated on the sustained disinflation recorded in the past five months, projections of declining inflation for the rest of 2025 and the need to support economic recovery efforts,

The bank also adjusted the standing facilities corridor to improve the efficiency of the interbank market and strengthen monetary policy transition.

The CBN boss expressed satisfaction with the prevailing macroeconomic stability evidenced by the improvements in several indicators, including sustained disinflation, improved output growth, stable exchange rates and robust external reserves.

“In the view of the committee, the stability in the macroeconomic environment offered some headroom for monetary policy to support economic growth and recovery. ‘’Notwithstanding the consistent deceleration in inflation, the committee observed the persistent build-up of excess liquidity in the banking system, resulting largely from fiscal releases emerging from improved revenues.

‘’Being mindful of the need to preserve the prevailing macroeconomic stability, the MPC noted the risks posed by the excess liquidity in the banking system,” the CBN governor added.

$43bn external reserve

the CBN boss disclosed further that Nigeria’s gross external reserve stood at $43.05 billion as of September 11, 2025, compared with US$40.51 billion at the end of July 2025, with an import cover of 8.28 months. “Similarly, the second quarter 2025 current account balance recorded a significant surplus of $5.28 billion, compared with $2.85 billion in the first quarter of 2025.,” he added.

NECA demands reforms to ease cost of living crisis, lauds CBN rate cut

The Nigeria Employers’ Consultative Association, NECA, has lauded the CBN’s decision to reduce the MPR, by 50 basis points, bringing it down to 27 percent at the 302nd meeting of its MPC.

The Director-General of NECA, Mr. Adewale-Smatt Oyerinde, who made the commendation in a statement, said the modest reduction was a welcome move in light of the sustained decline in inflation, which eased to 20.12 percent in August 2025 from 21.88 percent in July, according to the National Bureau of Statistics, NBS.

“For over five months, inflationary pressures have eased. This provides critical space for policymakers to balance the pursuit of price stability with the urgent need to stimulate growth,” Oyerinde said.

While praising the MPC’s move, Oyerinde warned that the benefits would only be felt if the decision translates effectively into the real economy.

“If credit costs are lowered, businesses can access affordable financing, expand investments, and create jobs. However, the persistently high CRR and other liquidity restrictions risk limiting these intended outcomes,” he cautioned.

The NECA boss stressed that food inflation, which stood at 21.87 percent, continues to place enormous strain on households and erode disposable incomes.

“Macroeconomic stability will only have meaning when Nigerians experience tangible relief through lower food and living costs” he said.

CBN’s easing of credit conditions a welcome, timely intervention -CPPE

Reacting as well, Centre for the Promotion of Private Enterprise (CPPE) commends the CBN and its Committee, MPC for their recent decision to ease credit conditions in the Nigerian economy. This marks a significant policy shift toward supporting growth and investment, following an extended period of aggressive monetary tightening to rein in inflation.

Dr Muda Yusuf, Director/CEO, CPPE,said: “A notable new measure was the introduction of a 75 percent CRR on non-TSA public sector deposits, aimed at containing excess liquidity risks that could arise from fiscal operations. This action is designed to prevent volatility in money supply growth that could undermine recent progress in price stability”.

Laudable, but impact may not be immediate — ASBON

Commenting , President of the Association of Small Business Owners of Nigeria (ASBON), Dr Femi Egbesola, applauded the cut in MPR, describing it as positive but cautioned that impact may not be felt immediately.

His words: “The reduction of the MPR by 50 basis points from 27.5% to 27% is a welcome development, especially as it is the first cut in three years. It signals that the CBN is beginning to balance inflation control with the urgent need to stimulate growth in the economy.

“For the real sector, this move could gradually ease borrowing costs and improve access to finance for manufacturers, SMEs, and other productive businesses. “However, the impact may not be immediate or substantial since lending rates remain very high. The real benefit will come if this cut marks the beginning of a consistent downward trend in rates, supported by strong fiscal and structural policies that address power, infrastructure, and the business environment”.

Reacting as well, David Adonri, analyst and Vice Executive Chairman at Highcap Securities Limited, said: “Although popular feedings support the relaxation of monetary policy because the rebased inflation rate moderated in past five consecutive months, I am worried about sustainability of this action due to enormous threats of insecurity and volatility of global commodities market.’’

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