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The Central Bank of Nigeria (CBN) has finally confirmed the licensing of three new banks. This is revealed in the information obtained from the website of the apex bank.

According to the section of CBN’s website containing the list of Deposit Money Banks (DMBs) and financial holding companies operating as of July 23rd, 2019, Titan Trust Bank Limited and Globus Bank Limited have been added.

The list also indicates that the regulator has issued a Non-Interest Banking license with regional authorisation to TAJ Bank Limited. With the latest information, the commercial banks operating in the country are now 23, from the initial 21. Also, non-interest banks are now two.

Further Details: With the latest development, the number of commercial banks with national authorization now stands at 11. Note that Banks with national authorisation are banks with a capital base of N25billion and are allowed to operate in all states of the federation but barred from having offshore operations. 

  • while the number of commercial banks with regional authorization (having a capital base of N10 billion and restricted to operate within a geographical scope of a minimum of five and a maximum of 10 contiguous states) now stands at three.
  • Also, with the licensing of TAJ Bank Limited as a non-interest bank with regional authorisation means there are now two non-interest banks operating in the country.
  • Recall, that Jaiz Bank is the non-interest rate bank to be licensed by the CBN with the license to operate in all states of the federation (national authorisation). 

Earlier Development: Nairametric had revealed in April, that the CBN has issued licenses to five (5) new banks. According to the report on the supposed newly banks, only two of the identities of the new banks were revealed and they are Titan Trust Bank and Globus Bank.

  • A former CBN Deputy Governor was reported to be the Chairman Titan Trust Bank
  • Globus Bank reportedly has Elias Eboigbe  Igbinakenzua as one of its promoters. 
  • Analysts have questioned the need for the issuance of fresh banking licenses when the Asset Management Company of Nigeria (AMCON) holds key stakes in two national banks in the country.

[READ: Snippets of the 5 newly licensed banks emerge]

The Newly licensed Banks: According to sources, Globus bank limited obtained its regional banking license in 2019 and begun operations on May 2, 2019.

  • The executive director of Globus Bank Limited is Elias Igbinakenzua. Igbinakenzua has had stints as an Executive Director of Zenith Bank and Access Bank respectively.
  • Titan trust bank was established in 2018 but officially obtained its license in April 2019 as a national bank and started operations. The Executive director is Adaeze Udensi. The bank’s operations include SME banking, Digital banking and Commercial banking

More Banks on the way? The latest announcement made by the Central Bank suggests more banks may soon be licensed by the CBN.

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Just as the apex bank has revealed the plan to recapitalise the Nigerian Banks again, the big take away is that the CBN may be planning to issue one or two more licenses so as not to drastically reduce the number of banks in the country.

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[READ FURTHER: CBN is set to recapitalise Nigerian banks again]


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