The Central Bank of Nigeria (CBN) has released a conclusive directive that intricately outlines the procedure for financial holding companies to calculate their minimum paid-up capital, following a series of confusions that had postponed the issuance of various banks’ half-year and nine-month fiscal reports.
In a circular dated November 14, 2025, the apex financial institution recognized the “diverse interpretations” surrounding the concept of minimum paid-up capital as articulated in Section 7.1 of the 2014 Guidelines for Licensing and Regulation of Financial Holding Companies.
To eradicate any uncertainty, the CBN decreed that minimum paid-up capital must be meticulously computed as the par value of issued shares coupled with any share premium resulting from their issuance.
“All Financial Holding Companies are mandated to adhere to this definition when determining their minimum capital requirement—without any exceptions for subsidiaries,” the circular articulated.
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The regulator emphasized that this directive takes immediate effect, asserting that any prior interpretations contrary to the new specification “should be ceased immediately.”
This initiative is anticipated to alleviate market apprehensions and provide much-needed clarity for lenders maneuvering through the ongoing regulatory capital landscape.
