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New capital base : 26 banks to shop for N4tn
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The apex bank on Thursday announced new guidelines on its recapitalisation policy for banks in the country. In a statement signed by its acting Director of Corporate Communications, Sidi Ali, the CBN directed commercial banks with international authorisation to increase their capital base to N500bn and national banks to N200bn.
According to the acting CBN director, commercial banks with national licences must meet a N200bn threshold, while those with regional authorisation are expected to achieve a N50bn capital floor.
Similarly, non-interest banks with national and regional authorisations will need to increase their capital base to N20bn and N10bn, respectively.
The CBN’s move came two days after the Monetary Policy Committee hinted that it would change the capital base of the banks.
Based on the CBN circular on recapitalisation, only the share capital and premium capital of the shareholders’ fund portion of the balance sheet will be recognised.
The circular read, “For existing banks (a) The minimum capital specified above shall comprise paid-up capital and share premium only. For the avoidance of doubt, the new capital requirement shall NOT be based on shareholders’ funds. (b) Additional Tier 1 capital shall not be eligible for the purpose of meeting the new requirement. (c) All banks are required to meet the minimum capital requirement within a period of 24 months commencing from April 1, 2024, and terminating on March 31, 2026. (d) Notwithstanding the capital increase, banks are to ensure strict compliance with the minimum capital adequacy ratio requirement applicable to their licence authorisation. (e) In line with extant regulations, banks that breach the CAR requirement shall be required to inject fresh capital to regularise their position.”
For proposed banks, the CBN said their minimum capital requirement shall be paid-up capital and applicable to all new applications for banking licences submitted after April 1, 2024.
It added that for proposed banks whose applications it was processing, “it shall continue to process all pending applications for banking licences for which capital deposit had been made and/or Approval-in-Principle (AIP) had been granted. However, the promoters of such proposed banks shall make up the difference between the capital deposited with the CBN and the new capital requirement not later than March 31, 2026.”
But according to an analysis of the latest financial statements of 26 out of the 30 operating banks, most, if not all of the financial institutions must fashion out strategies and methods to reach the new standards.
However, bankers have voiced opposition to the central bank’s decision to omit retained earnings from the share capital calculation.
Anonymously expressing their views in chats with our correspondents, they said the decision to exclude retained earnings from share capital calculations was flawed.
According to Saturday PUNCH findings, while the 26 banks will need over N3.972tn combined, the tier 1 banks have to raise the highest amount of N2.569tn.
These tier 1 banks include the largest bank in Nigeria, Access Bank, whose parent company, Access Holdings, earlier on Thursday during an investor call, said that it planned to raise about $1.8bn to expand its operations over the next four years as it targets becoming one of the continent’s largest lenders.
Access Bank said that it would raise $1.5bn or the naira equivalent through the issue of shares, bonds or other instruments to fund a five-year growth plan that began last year. It also revealed plans to raise as much as N365bn ($257m) through a rights issue.
Based on the audited results of 2023, AccessCorp has N251.81bn for share capital and share premium. To meet the new CBN requirements of N500bn, it will need about N248.19bn.
Apart from Access Bank, other banks with international operating licences include Union Bank of Nigeria, Zenith Bank, which is transitioning to a holding company, United Bank for Africa, Guaranty Trust Holdings Company Plc, Fidelity Bank, FCMB Group and FBN Holdings Plc, which will need about N351.91bn, N229.26bn, N384.19bn, N361.81bn, N370.3bn, N374.71bn, and N248.66bn, respectively.
Iran’s foreign ministry on Monday said it was not currently involved in negotiations with the United States, despite a halt in recent fighting between the two sides.
“Mediators may convey messages from the American side to us regarding current developments in the region. But at present, we are not engaged in any negotiations with the United States,” ministry spokesman Esmaeil Baqaei said at a weekly press briefing.
“Claims that Iran has requested negotiations are fabrications that the other side circulates from time to time,” he added.
Hostilities resumed between Iran and the United States earlier this month after diplomatic efforts collapsed amid an impasse regarding the Strait of Hormuz.
Fighting has nonetheless paused since early Saturday, following 13 days of exchanges of fire between the two sides.
Baqaei criticised the United States, saying its conduct in recent years has “resembled that of a mafia gang that adheres to no rules or laws”.
“So long as such behaviour by the United States continues, we cannot be hopeful about the emergence of a reasonable process,” he added.
Iran insists on retaining control over the management of the Strait of Hormuz, including the collection of service fees, while keeping Oman involved as a coastal state.
Iran’s Revolutionary Guards have turned back multiple vessels in recent days, including six earlier on Monday, that attempted to transit the strait outside the route designated by the Islamic republic.
On Monday, Baqaei reiterated that Washington had nothing to do with recent talks with Oman over the administration of the Strait of Hormuz.
“These talks have no connection with the United States. They are a bilateral matter between Iran and Oman, and they are continuing,” Baqaei said, adding that the waterway “remains closed”.
The Kebbi State Police Command has confirmed the abduction of
a Kebbi State High Court judge, Justice Faruku Hassan Bunza after suspected Bandits invaded his residence in Bunza Local Government Area.
Confirming the abduction, the State Police spokesperson, SP Bashir Usman, said the judge was taken from his residence around midnight.
“I can confirm that Hon. Justice Faruku Hassan Bunza was abducted from his residence in Bunza around midnight,” Usman said.
He disclosed that the Commissioner of Police, CP Umar Muhammad Hadejia, had immediately deployed tactical and intelligence teams to track the abductors and rescue the judge.
“Our personnel are combing identified locations, including forest hideouts, to ensure that the judge is rescued alive and unharmed,” the police spokesperson said.
NATIONAL WAVES learnt that the gunmen stormed the judge’s home along Zogirma Road at about 12:00 a.m. on Sunday, shortly after he returned from a trip to Sokoto State.
The attackers fired sporadically into the air before whisking the judge away. No member of his household was kidnapped or molested during the operation. He had just returned from Sokoto when the gunmen invaded his residence and abducted him,” a source squealed
A family member who craved for anonymity said “Immediately the incident happened, we alerted the relevant authorities, including the leadership of the High Court,”
News
Confusion in Anambra as students feared trapped in private hostel near Oko Polytechnic collapses
A three-storey private hostel warehousing students of Federal Polytechnic Oko has collapsed in Amokpala, Oko, in Orumba North Local Government Area of Anambra State, leaving a yet-to-be-identified number of occupants trapped beneath the rubble.
The building, identified as Elite Five Star Lodge, reportedly caved in late Sunday night.
The collapse of the hostel located near Tonimas Filling Station in the Oko Polytechnic community sparked panic among residents and students as cries for help were reportedly heard from beneath the debris.
Emergency responders launched rescue operations, with personnel from the Anambra State Police Command, the Anambra State Fire Service, the Anambra State Emergency Management Agency (SEMA), and other security and emergency agencies deployed to the scene.
Several injured victims have so far been rescued from the collapsed structure and taken to a hospital in Oko for medical treatment.
Search-and-rescue teams, however, continue efforts to reach other occupants believed to be trapped under the debris.
Authorities said the exact number of casualties and those trapped could not be immediately confirmed, as rescue operations were still ongoing at the time of filing this report.
Confirming the incident, the spokesperson for the Anambra State Police Command, SP Tochukwu Ikenga, said a police-led joint security team swiftly secured the area and coordinated emergency response efforts to prevent further loss of life.
Ikenga urged residents to remain calm, refrain from spreading unverified information, and stay away from the scene to allow rescue workers unhindered access to carry out their operations.
He added that the police command would provide further updates as more verified information becomes available.
We don’t have current negotiations with US — Iran
Police Finally Confirm Abduction Of Kebbi High Court Judge By Bandits
Confusion in Anambra as students feared trapped in private hostel near Oko Polytechnic collapses
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