Nigeria: Capital Adequacy/BASEL

On 10 June 2026, the Central Bank of Nigeria ("CBN") released an Exposure Draft of the Revised Guidelines for Licensing and Regulation of Financial Holding Companies in Nigeria (the "Guidelines"). The proposed Guidelines are aimed at strengthening the regulatory framework governing Financial Holding Companies ("FHCs"), addressing governance and operational issues that have emerged under the current regime, and promoting greater consistency in the supervision of banking groups and financial conglomerates.

The Central Bank of Nigeria (CBN) has mandated a significant increase in the minimum capital requirements for commercial, merchant, and non-interest banks operating in Nigeria.

It was long anticipated, and it eventually happened on 28th March, 2024. So, it was not a surprise for many watchers of the Nigerian banking sector, what was a surprise, however, was the nature of the new requirement that excluded a large portion of a bank's shareholders' funds.