The Central Bank of Nigeria has issued a directive to clarify the calculation of minimum paid-up capital for financial holding companies, following confusion that delayed the release of some banks’ financial statements. In a circular dated November 14, 2025, the apex bank addressed the ambiguity surrounding the term minimum paid-up capital, as stated in the 2014 Guidelines for Licensing and Regulation of Financial Holding Companies.
The CBN acknowledged that divergent interpretations of the term had caused uncertainty, prompting the need for a definitive directive. To eliminate this ambiguity, the bank ruled that minimum paid-up capital must be computed as the par value of issued shares plus any share premium arising from their issuance. This definition applies to all financial holding companies, without exception for subsidiaries.
The regulator emphasized that the directive takes immediate effect, and any previous interpretations that do not align with the new clarification should be discontinued. This move is expected to provide clarity for lenders navigating ongoing regulatory capital requirements and calm market anxiety.
The confusion surrounding the calculation of minimum paid-up capital had delayed the release of some banks’ half-year and nine-month financial statements. The CBN’s directive aims to provide a clear and consistent approach to calculating minimum capital requirements, ensuring that financial holding companies can accurately assess their capital positions.
The banking sector in Nigeria has been subject to various regulatory requirements in recent years, aimed at strengthening the financial system and enhancing stability. The CBN’s directive is part of these efforts, as it seeks to promote transparency and consistency in the calculation of minimum paid-up capital.
With this clarification, financial holding companies can now proceed to calculate their minimum capital requirements with certainty, and the release of delayed financial statements is expected to resume. The CBN’s move is seen as a positive step towards maintaining stability and confidence in the Nigerian banking sector, and its impact will be closely monitored by market participants and regulators alike.
