BY EZECHIE AWELE EMMANUEL
Several Banking Institutions in Nigeria recently have gathered to raise $1.2 Billion from proceeds to invest in the cyber security Infrastructure.
This report was indicated in the offering of memorandum of 5 Banks that have joined their proceeds to meet the New Capital Requirement of the Central Bank of Nigeria.
At the end of March 2024, the CBN released New Capital Requirements for the banks operating around the Country.
CBN directed commercial banks with international access to increase their capital base to 500billion naira, National banks to 200Billion Naira and those with regional access to have a 50Billion naira capital floor.
The Apex Bank gave the Banking Institutions 2 years to achieve that target with 3 options such as: Raising Additional Capital, mergers, and assets, and Liscense downgrade or upgrade.
According to some sources, there is a significant capital deficiency of 4.2Trillion Naira across all the licensed banks, as much as 35% of the new minimum capital asked to achieve.
Analysis show that the Guaranty Trust Holding Company (GTCO) Had budgeted the highest amount to be invested into the Cyber Security plan.
GTCO offered 9 billion of just shares with the intent to raise over 400Billion Naira, GTCO then said 94.3% of the proceed which is 370Billion Naira would go into the recapitalization of the banking subsidiary while the remaining 5.7% would be on acquisition of pension, fund administration and access management.
Access bank stated that 20% of the net proceeds, which is 343Billion Naira would be invested in the IT infrastructure and development.
The Institution said 41Billion Naira would be invested in the Network Infrastructure and 27Billion Naira would go into the Cyber Security project which brings the total being spent on IT to 68Billion Naira.
Zenith Bank PLC stated that the investments would be brought out of the NET Proceeds which is 99Billion Naira, and then 20% which is 19Billion Naira would go into the investments.
Fidelity Bank has also stated that 20% of its proceeds, which is around the same amount as zenith Bank, would be invested in the IT Infrastructure.
