CBN Releases List of Licensed Deposit Money Banks

This week it was reported that four (4) deposit money banks in Nigeria had upgraded their banking licenses from regional to national, bringing the total number of banks nationwide to 44, following the urgency of recapitalization.

The Central Bank of Nigeria (CBN) followed by releasing a list of approved financial institutions, including seven foreign banks, fifteen national banks, four regional banks, four non-interest banks, six merchant banks, seven financial holding companies, and one representative office.

The following banks have international authorization: Access Bank Limited, Fidelity Bank Plc, First City Monument Bank Limited, First Bank Nigeria Limited, Guaranty Trust Bank Limited, United Bank of Africa Plc, and Zenith Bank Plc. The CBN's official website provides this list.

CLICK THIS LINK FOR FULL VIEW

The following banks hold national authorization licences: National Bank of Nigeria Plc, Heritage Bank Plc, Globus Bank Limited, Keystone Bank Limited, Polaris Bank Limited, Stanbic IBTC Bank Limited, Standard Chartered Bank Limited, Sterling Bank Limited, Titan Trust Bank Limited, Union Bank of Nigeria Plc, Unity Bank Plc, Wema Bank Plc, Premium Trust Bank Limited, and Optimus Bank Limited.

While Jaiz Bank Plc, Taj Bank Limited, Lotus Bank Limited, and Alternative Bank Limited are national authorised players in the non-interest banking sector, Providus Bank Limited, Parallex Bank Limited, Suntrust Bank Nigeria Limited, and Signature Bank Limited hold regional licences in the commercial banking segment.

The following are merchant banking entities: Greenwich Merchant Bank Limited, Nova Merchant Bank Limited, FSDH Merchant Bank Limited, Coronation Merchant Bank Limited, and Rand Merchant Bank Limited.

The following financial holding companies are also listed on the list: Sterling Financial Holdings Limited, Guaranty Trust Holding Company Plc, FSDH Holding Company Limited, Access Holdings Plc, FBN Holdings Plc, FCMB Group Plc, and Stanbic IBTC Holdings Plc.

Mauritius Commercial Bank Representative Office (Nigeria) Limited was the only representative office on the list.

In recent weeks, the Central Bank of Nigeria (CBN) has taken an essential step towards strengthening the durability and stability of the nation's banking sector with its most recent revision of the minimum capital requirements for Nigerian banks. How will this improve the nation's economy? We will find out in our reading, as we have combined different research to give you light.

This recapitalisation program is expected to impact Nigeria's financial sector significantly. It is designed to address the challenges caused by currency devaluation and bring Nigeria into compliance with international regulatory standards.

This week also the Central Bank of Nigeria ordered the new implementation of a 0.5% levy on all electronic transactions to address the high rate of cybercrime in the financial system.

The implementation follows the enactment of the Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024 and pursuant to the provision of Section 44 (2)(a) of the Act, which provided for the rate deduction.

The development was announced in a circular from the CBN on May 6, 2024, forwarded to all commercial, merchant, non-interest, and payment service banks, other financial institutions, Mobile Money Operators, and Payment Service Providers, and jointly signed by the CBN Director, Payments System Management Department, Chibuzo Efobi, and Director, Financial Policy and Regulation Department, Haruna Mustafa.

According to a report, the correspondence also postdates CBN's circulars of  June 25, 2018, and October 5, 2018, on compliance with Cybercrimes (Prohibition, Prevention, etc.) Act 2015.