The Corporate Affairs Commission (CAC) has issued new guidelines for Deposit Money Banks (DMBs) to aid them in the ongoing recapitalization process, following the Central Bank of Nigeria’s (CBN) directive to increase their capital base. This move aims to ensure the banking sector is sufficiently capitalized to support the growth of Nigeria’s $1 trillion economy.
Key Details of the Recapitalisation Directive:
– International Banks: Required to raise capital to N500 billion.
– National Banks: Required to raise capital to N200 billion.
– Regional Banks: Required to raise capital to N50 billion.
The CAC’s new guidelines, pursuant to Section 8 (1) (e) of the Companies and Allied Matters Act No. 3 of 2020, are designed to support regulatory compliance and the recapitalization strategy.
Requirements for New Incorporations:
- Name Reservation or Availability Approval
- Approval-in-Principle from Sector Regulator
- Completed Online Incorporation Form
- Payment of Stamp Duty and Filing Fees
Requirements for Existing DMBs:
– Up-to-date Annual Returns
– Information on Persons with Significant Control
– Certificate of Increase Issued Within 24 Hours of Regulatory Approval
Requirements for Mergers of Small and Medium Banking Institutions:
- Special Resolution for the Merger
- Scheme of Merger Approved by the Securities and Exchange Commission
- Certified True Copy of Court Order Authorizing Extraordinary General Meetings
- Evidence of Publication in Two Newspapers and the Federal Gazette
- Certified True Copy of Court Order Sanctioning the Scheme of Merger
For any enquiries or complaints, the CAC can be reached at [[email protected]](mailto:[email protected]) or +234 816 920 9551.
Additional Guidelines for Increasing Share Capital:
- Company Resolution
- Return of Allotment
- Statutory Declaration by Directors
- Notice of Regulatory Approval Requirement
- Affidavit by a Director
- Amended Memorandum of Association
- Payment of Stamp Duties and Filing Fees
- Filing of Regulatory Approval
The CAC warned that the notice of regulatory approval must comply with Section 127 (3), (4) & (5) of CAMA.
By adhering to these guidelines, DMBs can ensure compliance with regulatory requirements and contribute to the robust growth of Nigeria’s banking sector.
