Five banks budget N222bn for cybersecurity

Financial institutions that have started raising capital have stated that they will allocate $1.20bn from the proceeds to invest in technology and bolster their cybersecurity infrastructure.

This was indicated in the offer prospectus of five lenders that have commenced their capital raise, to meet the new capital requirement of the Central Bank of Nigeria.

In late March, the CBN announced new capital requirements for the banks operating in the country.

The apex bank directed commercial banks with international authorisation to increase their capital base to N500bn, national banks to N200bn and those with regional authorisation were expected to achieve a N50bn capital floor.’

CBN gave the financial institutions two years to achieve the target and three options: raising additional capital, mergers and acquisitions, and licence upgrade or downgrades. According to PwC, there is a significant capital shortfall of N4.2tn across all licence categories, as much as between 35 per cent and per cent of the new minimum capital.

An analysis of the offering documents showed that Guaranty Trust Holding Company had budgeted the highest amount to be invested in technology.

GTCO offered nine billion ordinary shares of 50 each at N44.50 per share with the intent to raise about N400.50bn