Providus Bank Limited has officially confirmed full compliance with the Central Bank of Nigeria (CBN)’s recapitalisation requirements for regional commercial banks (lenders) amid sector-wide capital restructuring.
The official confirmation was made to the bank's customers for the purpose of dispelling market speculation regarding its regulatory standing with the apex bank.
The lender confirmed that it has complied with the requirements of the CBN’s 24-month recapitalisation framework since January 2025, maintaining a capital base of ₦65 billion.
Notably, regional commercial banks like Providus are required to maintain a minimum capital base of ₦50 billion. The bank’s capital exceeds the regulatory requirement by ₦15 billion.
Providus Bank confirmed all this information in a letter sent to customers in a bid to provide factual clarification to the public speculation circulating about its non-compliance with the CBN minimum requirement.
The bank noted that it achieved the ₦50 billion capital requirement nearly 14 months ahead of the March 31, 2026, deadline set by the CBN under Olayemi Cardoso’s leadership.
On April 1, 2024, CBN commenced the recapitalisation exercise for banks that operate in Nigeria. The framework was implemented to fortify Nigerian banks against local and international financial shocks. The banks are required to maintain minimum capital levels based on their scope of operations.
Banks with an international licence must meet the ₦500 billion requirement, national banks must meet the ₦200 billion requirement, and regional banks must meet the ₦50 billion requirement.
International banks operate both within Nigeria and across multiple countries. National banks and regional banks operate within Nigeria and have smaller scopes of operations. These are the reasons they have given for lower capital requirements.
National banks operate across all states in Nigeria. Regional banks, on the other hand, operate within a limited geographical area, such as one or a few states.
These tiered requirements ensure that each type of bank has enough resources to safely serve its customer base, meet regulatory expectations, and maintain stability in the Nigerian banking sector.
Holding a capital level that is 30% above what was required signals that Providus Bank has demonstrated strong governance and ambitious growth strategies.
Notably, the bank has received CBN's preliminary approval to acquire and merge with Unity Bank—a bank that was formed through the mergers of nine banks in 2006.
However, to support the Providus-Unity Bank acquisition and prevent potential systemic risks, the apex bank previously provided a ₦700 billion lifeline to stabilise the post-merger institution.
The merger could upgrade Providus Bank from a regional bank to a national bank. For the Unity Bank's shareholders, they were offered a cash payment of ₦3.18 per share, or alternatively, an exchange of 18 ordinary Providus Bank shares for every 17 Unity Bank shares they held.
