The Central Bank of Nigeria (CBN) has announced that 14 banks have fully met the new capital requirement in the ongoing recapitalization exercise.
CBN Governor, Yemi Cardoso, disclosed this while presenting a communiqué from the 302nd meeting of the Monetary Policy Committee (MPC). The CBN had introduced a new minimum capital base requirement for banks, with tiers depending on license type.
The MPC also reduced the Monetary Policy Rate (MPR) by 50 basis points from 27.5% to 27%. Cardoso said the decision to lower the MPR was predicated on the sustained disinflation recorded in the past five months and projections of declining inflation for the rest of 2025. The committee also adjusted the standing facilities corridor around the MPR to +250/-250 basis points and adjusted the Cash Reserve Ratio (CRR) for commercial banks to 45% from 50%.
The CBN governor expressed satisfaction with the prevailing macroeconomic stability, evidenced by improvements in several indicators, including sustained disinflation, improved output growth, stable exchange rates, and robust external reserves. Nigeria’s gross external reserve stood at $43.05 billion as of September 11, 2025, with an import cover of 8.28 months.
The Nigeria Employers’ Consultative Association (NECA) has lauded the CBN’s decision to reduce the MPR, describing it as a welcome move. NECA’s Director-General, Adewale-Smatt Oyerinde, said the modest reduction would help stimulate growth, but warned that the benefits would only be felt if the decision translates effectively into the real economy.
The Centre for the Promotion of Private Enterprise (CPPE) also commended the CBN’s decision, saying it marks a significant policy shift toward supporting growth and investment. However, the Association of Small Business Owners of Nigeria (ASBON) cautioned that the impact may not be immediate, as lending rates remain high.
The CBN’s decision to ease credit conditions has been welcomed by private sector operators, who believe it will help stimulate economic growth. The MPC’s decision to reduce the MPR is seen as a step in the right direction, but stakeholders are urging the government to implement more reforms to ease the cost of living crisis.