The Central Bank of Nigeria (CBN) has issued banking licenses to three new institutions, increasing the total number of banks in the country from 21 to 23. The newly licensed banks are Titan Trust Bank Limited, TAJ Bank Limited, and Globus Bank Limited.
Among these, TAJ Bank Limited has been licensed to operate as a non-interest bank, joining Jaiz Bank as the only two non-interest banks in Nigeria. Titan Trust Bank Limited and Globus Bank Limited, on the other hand, will function as commercial banks.
This expansion comes after significant reforms in 2005, led by then-CBN Governor Charles Soludo, which consolidated the banking sector by raising the minimum capital base requirement from ₦2 billion to ₦25 billion. This reform reduced the number of banks from 89 to 24, primarily by merging and acquiring weaker banks.
The issuance of new licenses marks a notable development in Nigeria’s banking sector, which has seen a gradual reduction in the number of operators over the years due to regulatory consolidations and other market forces. The entry of these new players could signal further diversification and growth within the industry.
