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Finance · Nigeria

Obtain a commercial/merchant bank licence (CBN)

License a deposit money bank with the Central Bank of Nigeria: choose the licence authorisation (regional, national or international) → deposit the minimum paid-up capital → Approval-in-Principle → final licence. Capital floors were reset in March 2024 with a 31 March 2026 compliance deadline.

4
steps
3
agencies involved
Who you will deal with
Central Bank of Nigeria (CBN)CBNCAC; CBN
The steps
  1. 1Choose the licence authorisation and capital band
    Agency
    Central Bank of Nigeria (CBN)
    What is required
    Under the March 2024 recapitalisation the minimum paid-up capital (share capital + share premium only) is: commercial bank - international ₦500bn, national ₦200bn, regional ₦50bn; merchant bank (national) ₦50bn; non-interest bank - national ₦20bn, regional ₦10bn. Existing banks had until 31 March 2026 to comply.
    Documents
    Board resolution on licence type and capital
    Typical timeline
    Planning
  2. 2Apply for Approval-in-Principle and deposit capital
    Agency
    CBN
    What is required
    Submit the application with a feasibility study/business plan, draft MEMART, shareholder and proposed-director details (fit-and-proper), and deposit the minimum capital with the CBN. Capital may be raised via fresh equity (private placement, rights issue, public offer), M&A, or a licence downgrade.
    Documents
    Feasibility study; draft MEMART; fit-and-proper filings; capital deposit
    Typical timeline
    Months
  3. 3Incorporate and build out the bank
    Agency
    CAC; CBN
    What is required
    On Approval-in-Principle, incorporate the bank, install the board and management, put the banking application/IT infrastructure, internal controls and risk framework in place, and open the premises for CBN inspection.
    Documents
    CIC; systems, controls and premises
    Typical timeline
    Months
  4. 4Final licence and commencement
    Agency
    CBN
    What is required
    CBN inspects and, if satisfied, grants the final banking licence. The bank may then commence business, subject to ongoing prudential returns, CRR/liquidity requirements and the CBN's supervisory regime.
    Documents
    Final banking licence
    Typical timeline
    On inspection

Primary source: https://www.cbn.gov.ng/Out/2024/CCD/Recapitalization_MARCH_2024.pdf · confidence: high

Also in finance
Obtain a Bureau de Change licence (CBN)Obtain a Pension Fund Administrator licence (PENCOM)Obtain a microfinance bank licence (CBN)Obtain a money lender's licence (state)Obtain a payment service (fintech) licence (CBN)Obtain a super-agent (agent banking) licence (CBN)

The numbers behind the decision

Knowing the process is half of it. ONYX also tracks the operating environment you are entering — daily grid generation, official FX, state-level input prices and inflation, and sector output — each figure source-linked and dated.

ONYX publishes what the responsible agencies publish, with a link to each source. Requirements, fees and timelines change, and an officer's reading of a rule can differ from the published text. Verify against the linked source before you commit money — this is reference information, not legal advice.

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