Citi meets Nigeria’s banking capital norms with $136m infusion-report

Core Insights - Citi has successfully met the Central Bank of Nigeria's new capital requirements by injecting fresh capital into its Nigerian unit, ensuring compliance with the N 200bn ($136m) threshold mandated for lenders with a national banking license [1][2] - The move is seen as a statement of confidence in Nigeria's future and a deliberate investment in its growth, with Citi ready to expand support for clients in priority sectors such as infrastructure, energy, and trade [2][5] - The Central Bank of Nigeria had previously increased the minimum capital requirement for lenders significantly, aimed at strengthening the banking industry against risks like high inflation and naira devaluation [2][3] Capital Requirements - National banks were mandated to augment their capital from N25bn to N200bn, while international banks needed to raise theirs to N500bn from an earlier N50bn [3] - As of last month, only 14 out of 36 financial institutions had met the new capitalisation standards set by the Central Bank of Nigeria [3] Strategic Moves - Last month, Citi reached an agreement to offload a 25% stake in its Mexican retail banking subsidiary Banamex for approximately 42 billion pesos ($2.3bn), which operates an extensive network of around 1,300 branches and 9,000 ATMs [4][5] - The divestment of Banamex is part of Citi's strategic moves, with the company indicating that the proposed initial public offering (IPO) for Banamex will depend on market conditions and regulatory approvals [5]