In a bid to curb illicit financing in the Nigerian banking sector, the Central Bank of Nigeria (CBN) has announced its plans to closely oversee the recapitalisation process in collaboration with law enforcement agencies.
A circular issued on Friday by Haruna Mustafa, the Director of the CBN’s Financial Policy and Regulation Department, revealed this initiative.
This circular is directed towards commercial, merchant, and non-interest banks, as well as promoters of proposed banks, outlining the new minimum capital requirements set by the CBN.
The regulator stated that it will work alongside relevant law enforcement bodies to enforce these regulations effectively.
The primary objective, as highlighted in the circular, is to ensure that the funds raised during the recapitalisation exercise are obtained through legitimate means and comply with regulatory standards.
It is worth noting that the CBN recently increased the minimum capital requirements for all banks operating in Nigeria.