224
By Daniel Adaji
The Central Bank of Nigeria (CBN) has introduced new transitional measures for a select group of banks still winding down from temporary regulatory support granted during the COVID-19 pandemic.
These measures, which include restrictions on dividends and bonuses, are aimed at helping affected banks retain earnings and build stronger capital buffers.
“These steps are part of our broader, sequenced strategy to implement the recapitalisation programme announced in 2023,” the CBN said in a statement late Tuesday.
The apex bank said the guidance, which applies to only a few banks, is not a signal of weakness but a continuation of the post-pandemic reform process.
“Nigeria’s banking sector remains fundamentally strong. These measures are neither unusual nor cause for concern,” CBN said.
The recapitalisation programme is designed to align with Nigeria’s long-term economic goals. It has already attracted substantial capital inflows and helped strengthen the balance sheets of most financial institutions.
According to the apex bank, many banks have already met, or are on track to meet, the new capital requirements ahead of the March 31, 2026 deadline.
To ease the transition, the CBN is allowing limited, time-bound flexibility within the capital framework, while maintaining its high regulatory standards.
“Nigeria generally maintains Risk-Based Capital requirements that are significantly more stringent than the global Basel III minimums,” the Bank noted.
The central bank emphasised that similar transitional arrangements are standard practice across global financial systems, including in the U.S. and Europe. It also pledged ongoing engagement with stakeholders through established platforms such as the Bankers’ Committee and the Body of Bank CEOs.
“Our goal is to ensure a transparent, predictable, and collaborative regulatory environment. We will continue to take all necessary actions to safeguard the sector’s stability and ensure a robust, resilient financial ecosystem that supports sustainable economic growth,” the apex bank said.