New rules may help consolidate Nigeria's banks

Significance The new regulations respond in part to the naira’s recent devaluation and depreciation, which have substantially shrunk domestic banking capital in dollar terms. It is the first upward revision of capital requirements since 2010. Impacts A wave of mergers and acquisitions could lead to major job losses in the banking sector. Foreign investment may depend on government efforts to improve the investment climate and stabilise the exchange rate. Many banks may struggle to raise sufficient capital within the allotted 24-month window, possibly leading to extensions.