In an apparent response to the global economic crisis which pulled down many global banks and exposed multiple weaknesses in regulation and banking structures, the Basel Committee on Banking Supervision agreed to new rules on the minimum level (capital ratio) and composite structure of Banks capital on the 12th of September, 2010. Broadly speaking, the new rules which are widely referred to as Basel III still stipulate a minimum Total Capital Ratio of 8%. However, in addition to increasing the portion of the 8% requirement that is Core Tier 1 Capital (from 2% to 4.5%), it requires Banks to reserve more common equity under what it calls Capital Conservation Buffer (2.5%). Thus, with this new buffer, Banks' Total Capital Ratios would rise to a minimum 10.50%. However, these new capital requirements will be progressively implemented over an 8-year span, with full implementation taking effect by January 1, 2019 (BIS, 2010). The Central Bank of Nigeria in its response to the global developments gave hint to abolishing the operation of the 10-year old universal banking concept through a Circular No. BSD/DIR/GEN/UBM/03/025 dated September 7, 2010 Some of the reasons proffered by the regulatory body for the abolition include the enhancement of the quality of banks, financial system stability and evolution of a healthy financial sector, ensuring the protection of depositor funds by ring fencing "banking" from non-banking business; redefining the licensing model of banks and minimum requirements to guide bank operations going forward; effective regulation of the business of banks without hindering their growth aspirations; and facilitating more effective regulator intervention in public interest entities. In this paper, we reviewed the new rules on the minimum level (capital ratio) and composite structure of Banks capital and what it portends for Nigerian banks. We also reviewed how the abolition of the universal banking model would impact on banks in Nigeria. The study found that the new rules on the minimum level and structure of banks capital will not negatively affect Nigerian banks as most of the banks already have provisions above the new BIS requirements. We also highlighted the challenges Nigerian banks would face in the light of the new licensing model and capital requirements. We therefore, recommend that the Central Bank of Nigeria should be alive to its regulatory and monetary stability responsibilities to ensure the exercise do not amount to another rigmarole and futility.