Rand Merchant Bank meets CBN recapitalisation requirement

Rand Merchant Bank Nigeria Limited (RMBN) says it has successfully met the Central Bank of Nigeria (CBN)’s capitalisation requirement for merchant banks, in line with the Banking Sector Recapitalization Programme. The bank said it had met the requirement as of December 30, 2025.

This milestone, the bank said in a statement, highlighted RMBN’s financial strength, resilience, and steadfast commitment to regulatory compliance. It also said the feat underscoresd shareholders’ confidence in the Nigerian economy and the bank’s strategic role in the country’s evolving financial sector.

The CBN requirement pegs the minimum capital base for commercial banks with international authorisation at N500 billion. The requirement for banks with national authorisation is put at N200 billion, while the new requirement for those with regional authorisation is N50 billion. Merchant Banks’ minimum capital requirement of N50 billion, while national and regional non-interest banks have capital requirements of N20 billion and N10 billion respectively.

“By meeting the CBN capitalization threshold, RMBN is well-positioned to deliver innovative financial solutions to clients, strengthen customer confidence, and support the stability and growth of Nigeria’s banking sector,” Rand Merchant Bank Nigeria Limited noted.

Commenting on the achievement, Chief Executive Officer of RMBN, Mr Bayo Ajayi, said: “We are proud to have met the CBN’s capitalization requirement. This accomplishment reflects our shareholders’ confidence in the Nigerian economy and our ongoing commitment to providing best-in-class corporate and investment banking services across Nigeria and Africa. Our focus remains on building a stronger, more resilient institution capable of thriving in Nigeria’s dynamic financial environment.”

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RMB Nigeria Limited, a member of the FirstRand Group, is a leading African corporate and investment bank. The bank offers clients innovative, value-added solutions across advisory, funding, trading, corporate banking, and principal investing.

Bank recapitalisation raise

Chairman of FirstHoldco, the parent company of First Bank Plc, recently urged the CBN to raise the minimum capital requirement for international banking licences from N500 billion to at least N1 trillion.

The billionaire businessman said high capital base would bolster the banking system and put the economy on the path of actualising $1 trillion gross domestic product (GDP) target by 2030.

“From where I stand, and with the benefit of many years in Nigeria’s business landscape, I believe it is time to raise the minimum capital requirement for international banking licences from N500 billion to at least N1 trillion,” he said.

“A modern economy aiming for the $1 trillion mark cannot rely on weakly capitalised banks. Stronger banks mean better governance, broader ownership, and institutions that are not run like personal estates, a problem we have lived with for far too long.”

Banks meeting recapitalistion requirements

By late November 2025, 16 of Nigeria’s 36 banks had already met or exceeded new capital requirements, CBN Governor, Mr Olayemi Cardoso, said on December 1, 2025.

According to Mr Cardoso, 27 banks had raised funds through public offers and capital increases, while others were at advanced stages in the process.

Mr Otedola said he was impressed by the bold decision to recapitalise the banking sector even though a number of people had criticised the move at the initial stage.

“Some people criticised it early on, unnecessarily in my view, but today it is clear it was the right move. Following the massive profits banks recorded in 2024, 2025 has rightly become a year of prudence and consolidation. This is the only way banks can support real sector lending and drive genuine economic growth next year,” he noted.