The Central Bank of Nigeria (CBN) has raised the capital bases for Banks operating in Nigeria. The new base would depend on the status and operational scope of the banks.

Below is a brief explanation:

“There is a regulation from CBN as per the amount that one needs to have as a CAPITAL BASE before you can get licenced to operate (own) a bank.

This requirement is split in three;
There are Banks that carry out national and international transactions. For such, your capital base must be N500 billion before you can own such bank(s).

There are banks that operate at STATE level, that’s the NATIONAL level and their transactions are limited within the country. For such, the CAPITAL BASE REQUIREMENT N200B.

Then, there are banks that operate only in particular regions, that is sub national, for such, their CAPITAL BASE REQUIREMENT is N50B

Banks will now try to recoup as much money as possible from their investment to meet up. That’s where LIQUIDITY comes in.
The lesser the amount of money you have in circulation, the lesser the inflation.

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Those who can’t meet up will merge or drop to a lower level”.

Liquidity means; How fast you can convert your assets or investment to cash. This is referred to as “LIQUIDITY”.