The Nigerian banking sector plays a key role in the growth of the country and is therefore one of the most heavily regulated sectors in Nigeria. As the primary regulator of the banking sector, the Central Bank of Nigeria (CBN) develops and implements policies to ensure that the banking sector remains viable and drives efficiency in economic activities. As at March 2025, there are 26 commercial banks in the country.
In 2024, the CBN implemented significant regulatory changes aimed at strengthening the financial system. One of the most impactful developments was the announcement of new minimum capital re8uirements for commercial, merchant, and non-interest banks through a circular issued on 03 2arch 050O. 1nder the new regime, the minimum paid-up share capital for different categories of banks was increased across board and banks were given until 31 March 2026 to comply, by exploring options such as fresh equity
injections, mergers and acquisitions, and license adjustments. This policy measure is the first regulatory induced recapitalization since 2005 and will remain the highlight of the Nigerian banking sector for the next 12 months leading up to the deadline. The highlights of the mandated recapitalization are further discussed under the header 'Year in Review'.
Monetary policy saw a series of aggressive interventions by the CBN's Monetary Policy Committee (MPC) in 2024. The CBN also released, among others, the Reviewed guidelines on International Money Transfer services in Nigeria on 31 January 2024 (the Revised IMTO Guidelines), revising the regulatory framework for International Money Transfer Operators (IMTO's); the Revised guidelines for Blacklisting for Banks and Other financial Institutions (OFIs) in Nigeria (the Blacklisting guidelines); and the Revised Regulatory and supervisory guidelines for Bureau De Change (BDC) operations in Nigeria 2024 (the Revised BDC Guidelines) aimed at curbing illicit currency flows and enhancing transparency in the foreign exchange market. The highlights of these are further discussed under the header 'Year in Review'.
