Business

CBN Speaks On Phasing Out Old Naira Notes

Published

2 years ago

July 26, 2023

The Central Bank of Nigeria (CBN) has said the N200, N500 and N1,000 old naira notes are slowly being phased out with the redesigned ones.

Acting CBN Governor, Folashodun Shonubi, made this known on Tuesday after the apex bank’s Monetary Policy Committee (MPC) meeting in Abuja.

The CBN also increased the Monetary Policy Rate (MPR), which measures interest rate, from 18.5 per cent to 18.75%.

Fielding questions from reporters, Shonubi said, “When a currency is printed and sent out, it is expected that it will go through a number of cycles, and then over time, will become one and then be replaced. That’s what we’re doing.

“We had to put out or re-put out old notes. And as they’re coming in, they’re being processed and returned to us as not issuable. We are then bringing out and replacing them with the new notes.”

Shonubi said there is an “optimal level of currency” in circulation and what is being done at the moment is replacing worn-out notes with new ones.

“We believe that we have an optimal level of the currency out there and so much of what’s being done is a replacement to keep the level, rather than just putting money out there,” he said.

“And that is seen by the fact that the banks, whenever they come to us for notes, we provide it to them. If it wasn’t enough, they will be asking us for more. If it was too much, they’ll be dumping that much more on us.

“So, we will slowly, and over time you will see the old notes replaced out of the system with the new notes that’ll be the norm.

“And that will be out of practice, not fanfare, you’ll just see it slowly morph from old to new.”

Last October, now suspended CBN Governor, Godwin Emefiele, announced plans to redesign the three highest naira bills and asked Nigerians to deposit their old notes before January 31, 2023, when they would cease to be legal tender.

The naira crunch caused economic turmoil as many Nigerians suffered hardship, leading to riots in some states and the burning of some banks and Automated Teller Machines (ATMs).

The apex bank subsequently said then President Muhammadu Buhari had approved an extension of the deadline for the naira swap.

Some then governors of the All Progressives Congress (APC) dragged the CBN and the Federal Government to the Supreme Court and the apex court ruled in March 2023 that the old N200, N500, and N1,000 notes would remain as legal tender until December 31, 2023.

Business

Fourteen Nigerian Banks Yet To Meet CBN’s Recapitalisation Ahead Of Deadline

Published

17 hours ago

November 27, 2025

Editor

No fewer than 14 Nigerian commercial banks are yet to meet the Central Bank of Nigeria’s recapitalisation requirement as the 31st March 2026 deadline inches closer.

This follows CBN Governor, Olayemi Cardoso’s announcement on Tuesday that sixteen Nigerian banks have met their recapitalisation requirement ahead of the apex bank’s March 2026 deadline.

DAILY POST reports that Cardoso disclosed this in a statement after the bank’s 303rd Monetary Policy Committee in Abuja.

According to Cardoso, the development indicates that there is financial soundness in the country’s financial banking system.

MPC had been urged by banks to ensure a successful implementation of the recapitalisation process.

“The committee noted with satisfaction the sustained resilience of the banking system, with most financial soundness indicators remaining within regulatory thresholds,” Cardoso said.

“Acknowledged the substantial progress in the ongoing recapitalisation programme, with 16 banks achieving full compliance with the revised capital requirements.

“The committee thus urged the Bank to ensure a successful implementation and conclusion of the programme, among other domestic developments,” Cardoso said.

This means that two additional Nigerian banks have been added to the list of banks which have complied with the apex bank recapitalisation requirement in the last two months.

Recall that Cardoso, in the 302nd MPC meeting, announced that only fourteen banks have met the recapitalisation requirement.

CBN records as of 2024 showed that the country has thirteen commercial banks, five merchant banks and seven financial holdings companies.

Earlier, a report emerged that Access Bank, Zenith Bank, GTBank, Wema Bank, Jaiz Bank, Stanbic IBTC, and others have already met CBN’s recapitalisation requirement.

CBN in March directed commercial banks with international authorisation to increase their capital base to N500 billion, while those with national licences must raise to N200 billion.

Business

CBN Retains Interest Rate At 27%

Published

3 days ago

November 25, 2025

Editor

The Monetary Policy Committee of the Central Bank of Nigeria has voted to retain the benchmark interest rate at 27 per cent.

CBN Governor, Olayemi Cardoso, announced the decision on Tuesday following the apex bank’s 303rd MPC meeting in Abuja.

Cardoso stated that the committee also resolved to keep all other monetary policy indicators unchanged.

He noted that the Cash Reserve Ratio (CRR) remains at 45 per cent for commercial banks and 16 per cent for merchant banks, while the 75 per cent CRR on non-TSA public sector deposits was equally maintained.

Cardoso added that the Liquidity Ratio was retained at 30 per cent, and the Standing Facilities Corridor was adjusted to +50/-450 basis points around the Monetary Policy Rate.

The decision comes as Nigeria records its seventh consecutive month of declining inflation, which eased to 16.05 per cent in September 2025.

Business

CBN Issues Directive Clarifying Holding Companies’ Minimum Capital

Published

4 days ago

November 24, 2025

Editor

The Central Bank of Nigeria, CBN, has issued a definitive directive detailing how financial holding companies should calculate their minimum paid-up capital, following weeks of confusion that delayed the release of some banks’ half-year and nine-month financial statements.

In a circular dated November 14, 2025, the apex bank acknowledged “divergent interpretations” of the term minimum paid-up capital as stated in Section 7.1 of the 2014 Guidelines for Licensing and Regulation of Financial Holding Companies.

To eliminate ambiguity, the CBN ruled that minimum paid-up capital must be computed strictly as the par value of issued shares plus any share premium arising from their issuance.

“All Financial Holding Companies are required to apply this definition in computing their minimum capital requirement—without exception for subsidiaries,” the circular stated.

The regulator added that the directive takes immediate effect, noting that any previous interpretation that does not align with the new clarification “should be discontinued forthwith.”

The move is expected to calm market anxiety and provide clarity for lenders navigating ongoing regulatory capital requirements.