News
CBN sets two year new minimum capital requirements for banks

The Central Bank of Nigeria, CBN has set a two year new minimum capital requirement for banks as part of moves to strengthen commercial and non-commercial bank in Nigeria.

The new requirement which was unveiled on Thursday, March 28, 2024, pegged minimum requirement capital base for commercial banks with international authorisation at N500 billion.

The Acting Director of the Corporate Communications Department, of CBN, Mrs Hakama Sidi Ali said the new minimum capital base for commercial banks with national authorisation is now N200 billion, while the new requirement for those with regional authorization is N50 billion.
Mrs. Sidi Ali also disclosed that the new minimum capital for merchant banks would be N50 billion, while the new requirements for non-interest banks with national and regional authorisations are N20 billion and N10 billion, respectively.
A circular signed by the Director, the Financial Policy and Regulation Department, Mr Haruna Mustafa, to all commercial, merchant, and non-interest banks and promoters of proposed banks emphasized that all banks are required to meet the minimum capital requirement within 24 months commencing from April 1, 2024, and terminating on March 31, 2026
According to the circular, the move, initially disclosed by the CBN Governor, Olayemi Cardoso, in his address to the Annual Bankers’ Dinner in November 2023, was to enhance banks’ resilience, solvency, and capacity to continue supporting the growth of the Nigerian economy.
To enable them to meet the minimum capital requirements, the CBN urged banks to consider injection of fresh equity capital through private placements, rights issues and/or offers for subscription; Mergers and Acquisitions (M&As); and/or upgrades or downgrade of license authorisation.
Furthermore, the circular disclosed that the minimum capital shall comprise paid-up capital and share premium only.
It stressed that the new capital requirement shall not be based on the Shareholders’ Fund.
“Additional Tier 1 (AT1) Capital shall not be eligible for meeting the new requirement. Notwithstanding the capital increase, banks are to ensure strict compliance with the minimum capital adequacy ratio (CAR) requirement applicable to their license authorisation.
Also read: BREAKING: CBN increases interest rate to 24.75%.
“In line with extant regulations, banks that breach the CAR requirement shall be required to inject fresh capital to regularise their position,” it added.
The CBN circular said the minimum capital requirement for proposed banks shall be paid-up capital, adding that the new minimum capital requirement shall apply to all new applications for banking licenses submitted after April 1, 2024.
It noted that the CBN would continue to process all pending applications for banking licenses for which a capital deposit had been made and/or an Approval-in-Principle (AIP) had been granted.
However, it said that the promoters of such proposed banks would make up the difference between the capital deposited with the CBN and the new capital requirement no later than March 31, 2026.
Also read: Inflation, exchange rate, interest rate in focus as new MPC holds first meeting.
Meanwhile, the CBN said all banks are required to submit an implementation plan (clearly indicating the chosen option(s) for meeting the new capital requirement and various activities involved with their timelines) no later than April 30, 2024.
The CBN also disclosed that it would monitor and ensure compliance with the new requirements within the specified timeline.

News
As Committee Chairman, I did not authorise Natasha to petition IPU over her suspension from Senate – Jimoh Ibrahim

The Chairman of the Interparliamentary Committee in the 10th Senate, Jimoh Ibrahim said he didn’t authorize Senator Natasha Akpoti-Uduaghan representing Kogi Central Senatorial District to petition the Interparliamentary Union over her suspension.

JImoh Ibrahim who represents Ondo South Senatorial District declared that the petition submitted to the IPU by Natasha is dead on arrival, saying she is not a member of the Interparliamentary Union to have rights to lodge a petition in a manner she did.

JImoh said Natasha’s decision to approach IPU and lodging a petition on her plight was not in pattern of IPU, stressing that he was an interim President of IPU in 2023 which he presided over proceedings and was conversant with the workings of the body.
According to a statement he made available to CAPITAL POST in Abuja on Friday, the Ondo Federal lawmaker hinted that it’s Nigeria that is a member of the IPU and not an individual person, highlighting that “a petition can only be filed against a State by another member State.”
The lawmaker said: “the purported petition from the suspended Senator Natasha is “dead on arrival.”
“Nigeria, rather than Senator Natasha, is the member of the IPU. A petition can only be lodged against another member state by a member state. This implies that the IPU cannot consider petitions from individuals who are not members.
“The suspended Senator Natasha is not a member of the IPU, but Nigeria is!
Additionally, the suspended Senator cannot represent the Federal Republic of Nigeria.
“I served as the interim President of the IPU in Geneva in 2023, and I am familiar with how the IPU operates after presiding over its proceedings.
“As Chairman of the Interparliamentary Committee in the Nigerian Senate, I did not approve or authorise the suspended Senator Natasha to attend the IPU on behalf of Nigeria to the Senate President.”
It is recalled that Senator Natasha Akpoti-Uduaghan was suspended from the Senate for six months over alleged breach of Senate Rules and Order and in the aftermath approached IPU and petitioned the Senator Godswill Akpabio-led Senate.
She has also alleged sexual harassment by the Senate President, Godswill Obot Akpabio which he has denied.

News
First Lady Oluremi Tinubu extends RHI food outreach to vulnerable households in Kogi

The Wife of the President, Senator Oluremi Tinubu, has reaffirmed the Renewed Hope Initiative (RHI)’s commitment to supporting Nigerians, particularly women, youths and vulnerable groups in Nigeria.

Speaking on Monday at the Government House in Lokoja, Kogi State, while donating food items to vulnerable groups, Senator Tinubu, represented by the Wife of the Vice President, Hajia Nana Shettima, highlighted the impact of the RHI Food Outreach Scheme in addressing food insecurity and improving livelihoods.

She noted that RHI has successfully distributed assorted food items to vulnerable households in eight states so far, including the FCT, Cross River, Edo, Ekiti, Gombe, Kano, Kwara, and Nasarawa, with Delta and Oyo set to benefit next.
The First Lady also emphasized that, through the RHI Social Investment Scheme, the initiative is collaborating with the Federal Ministry of Environment to establish environment and climate change clubs in secondary schools and climate change societies in tertiary institutions with the aims of promoting a clean and healthy environment for all citizens.
She noted that RHI’s Economic Empowerment Plan will provide a ₦250,000 grant to 200 Persons Living with Disabilities (PLWDs) to help recapitalize their businesses.
Senator Tinubu stated that the programmes align with President Bola Ahmed Tinubu’s Renewed Hope Agenda to enhance the well-being of Nigerians, particularly vulnerable groups. She urged beneficiaries to make good use of the food items to support their families.
She also commended Hajia Sefinat Usman Ododo, Wife of the Kogi State Governor and State Coordinator of RHI, for her exceptional efforts in coordinating the initiative’s programs within the state.
Earlier in her remarks, Hajia Sefinat Ododo welcomed the First Lady to Kogi state and assured that the food items would reach their intended beneficiaries, emphasizing that the support would greatly alleviate hardship for many households and pledged her commitment to ensuring fair distribution.
She also expressed the unwavering support of Kogi women for President Tinubu’s administration and praised Senator Oluremi Tinubu’s continued efforts in uplifting lives through RHI.
In his address, Kogi State Governor, Alhaji Ahmed Usman Ododo appreciated Wife of the President, Senator Oluremi Tinubu for her support through the RHI saying Kogi State was one hundred percent in support of the Tinubu administration.
The Governor highlighted some of his achievements in youth and women empowerment, and provision of a food palliatives, noting that he will continue to provide the leadership as a servant leader to make Kogi resources work for the people and further grow the economy.
The RHI Food Outreach Programme is part of RHI’s broader efforts to combat poverty and food insecurity across the nation.

News
Bill establishing College of Vocational, Technical Studies, Ikire, Osun State passes second reading in Senate

The bill for an act to establish Federal College of Vocational and Technical Studies, Ikire in Osun on Wednesday passed second reading at the Senate.

The sponsor of the bill, Senator Oyewumi Kamorudeen representing Osun West, in a lead debate stated that the bill will improve career and technical education, saying it will make trainers to be better equipped to face the challenges of modern time.

He explained that establishing a Federal Vocational and Technical college in Ikire, will address the growing need for specialized, middle-level skills needed in the workforce in Nigeria.
According to the lawmaker, “The institution will provide opportunities for young people to acquire necessary vocational skills that are needed for employment in the labour market”,
Sen. Kamarudeen emphasis that the bill if pass it will also help to promote economic growth and reduce unemployment.
The lawmaker stated that “the college when established It will provide opportunities for young people to acquire necessary vocational skills that are needed for employment in the labour market.
“This will help to promote economic growth and reduce unemployment. The Technical and Vocational institution established by this bill will provide acceptable certificates in middle-level Technical training education expertise” he said.
“As a country, we must as a matter of priority, encourage technical skill acquisition to align with the global paradigm shift especially now that Artificial intelligence is taking over human activities in the labour market. This will also minimize youth restiveness and other social vices in the country”.
Meanwhile, the Senate President, Senator Godswill Akpabio referred the bill to the committee on Education (Basic and Secondary) for further legislative input and report back in four weeks.

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