The Central Bank of Nigeria (CBN) has issued a directive to clarify how minimum paid‑up capital should be calculated for financial holding companies, a move prompted by confusion that delayed the release of some banks’ financial statements. In a circular dated 14 November 2025, the apex bank addressed the ambiguity surrounding the term “minimum paid‑up capital” as defined in the 2014 Guidelines for Licensing and Regulation of Financial Holding Companies. The CBN noted that divergent interpretations of the term had created uncertainty, necessitating a definitive clarification.
To eliminate this ambiguity, the CBN 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 that any previous interpretations not aligned with this clarification should be discontinued.
The confusion over the calculation had delayed the release of several banks’ half‑year and nine‑month financial statements. By providing a clear and consistent approach to calculating minimum capital requirements, the CBN aims to enable financial holding companies to accurately assess their capital positions and to restore the timely publication of financial statements.
The banking sector in Nigeria has faced numerous regulatory requirements in recent years, all aimed at strengthening the financial system and enhancing stability. The CBN’s directive is part of these broader efforts, promoting transparency and consistency in capital calculations. With this clarification, financial holding companies can now determine their minimum capital requirements with certainty, and the release of previously delayed financial statements is expected to resume. Market participants and regulators alike view the CBN’s action as a positive step toward maintaining stability and confidence in the Nigerian banking sector.
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