CBN Issues New Directive on Minimum Paid-Up Capital for Banks and Financial Holding Companies

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Abuja, Nigeria – The Central Bank of Nigeria (CBN) has issued a fresh directive providing clarity on the computation of minimum paid-up capital for banks and Financial Holding Companies, following weeks of uncertainty that delayed the release of some lenders’ half-year and nine-month financial results.

In a circular dated November 14, 2025, the apex bank stipulated that the minimum paid-up capital referenced under Section 7.1 of the 2014 Guidelines for Licensing and Regulation of Financial Holding Companies must be calculated strictly as the par value of issued shares plus any share premium arising from issuance.

The CBN emphasized that this clarification takes immediate effect and supersedes all previous interpretations, ensuring uniform application across the banking sector. The move is expected to provide regulatory certainty for financial institutions and facilitate the timely reporting of their earnings.

Industry analysts note that the directive underscores the CBN’s ongoing efforts to strengthen governance, transparency, and capital adequacy within the Nigerian banking system, while aligning regulatory practices with established international standards.

Banks and financial holding companies are advised to review their capital structures in line with the directive to ensure full compliance.

📷 Central Bank of Nigeria Official Communications

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