Nigeria Tells Banks to Raise Minimum Capital to $359 Million
- International bank capital to rise 10-fold to boost buffers
- Lenders are facing high inflation, currency and credit risks
High rise commercial office towers in the Central Business District (CBD) of Lagos, Nigeria.
Photographer: Benson Ibeabuchi/BloombergThis article is for subscribers only.
Nigeria’s central bank increased the minimum capital requirements for lenders 10-fold as it seeks to bolster the defenses of an industry facing a steep naira devaluation, high inflation and a weak economy.
The Abuja-based Central Bank of Nigeria increased the capital threshold for operating an international bank to 500 billion naira ($359 million) from 50 billion naira previously, while lenders with in-country operations will need 200 billion naira of capital compared with 25 billion naira before, it said in a statement.