As part of its ongoing efforts to strengthen the banking system, the Central Bank of
Nigeria (CBN) introduced time-bound measures for a small number of banks still
completing their transition from the temporary regulatory support provided, mostly in
response to the economic impact of the COVID-19 pandemic.
This step is part of the CBN’s broader, sequenced strategy to implement the
recapitalisation programme announced in 2023. The programme, designed to align
with Nigeria’s long-term growth ambitions, has already led to significant capital inflows
and balance sheet strengthening across the sector. Most banks have either
completed or are on track to meet the new capital requirements well before the final
implementation deadline of March 31, 2026.
The measures announced apply only to a limited number of banks. These include
temporary restrictions on capital distributions, such as dividends and bonuses, to
support retention of internally generated funds and bolster capital adequacy. All
affected banks have been formally notified and remain under close supervisory
engagement.
To support a smooth transition, the CBN has allowed limited, time-bound flexibility
within the capital framework, consistent with international regulatory norms. Nigeria
generally maintains Risk-Based Capital requirements that are significantly more
stringent than the global Basel III minimums.
These adjustments reflect a well-established supervisory process consistent with
global norms. Regulators in the U.S., Europe, and other major markets have
implemented similar transitional measures as part of post-crisis reform efforts.
The CBN remains fully committed to continuous engagement with stakeholders
throughout this period via the Bankers’ Committee, the Body of Bank CEOs, and other
industry forums. The goal is to ensure a transparent, predictable, and collaborative
regulatory environment.Nigeria’s banking sector remains fundamentally strong. These measures are neither
unusual nor cause for concern; they are a continuation of the orderly and deliberate
implementation of reforms already underway. The CBN 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.
Ag. Director, Corporate Communications