CBN Backs Strong Banks, Sets Transition Rules for Few

The Central Bank of Nigeria (CBN) has reiterated the resilience and soundness of the nation’s banking sector, announcing routine transitional measures for a limited number of banks still adjusting from post-pandemic regulatory relief.

According to a statement released by the CBN’s Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, the measures are part of a broader, phased implementation of the recapitalisation programme unveiled in 2023. The programme is intended to align the financial sector with Nigeria’s long-term economic growth goals.

“These steps are a continuation of our sequenced strategy to ensure that the recapitalisation process remains orderly, transparent, and effective,” Mrs. Sidi Ali said.

The measures, which affect only a small subset of banks, include temporary restrictions on capital distributions—such as dividends and executive bonuses. The aim is to retain earnings internally and support stronger capital adequacy levels. The CBN clarified that these banks have already been officially notified and are currently under enhanced regulatory oversight.

To support the transition, the CBN is permitting limited, time-bound flexibility in its capital framework. This approach, the Bank said, is in line with international best practices and mirrors post-crisis regulatory adjustments observed in global financial markets, including in the United States and Europe.

“Nigeria’s capital regulations are already more stringent than the global Basel III minimums,” the statement noted. “These transitional measures reflect our consistent and well-established supervisory framework.”

The CBN added that the majority of Nigerian banks are already in compliance or well on their way to meeting the new capital requirements ahead of the March 31, 2026 deadline. The recapitalisation programme has already attracted significant capital inflows and improved balance sheets across the sector.

The apex bank emphasized that these developments should not be viewed as a cause for concern. “Nigeria’s banking system remains fundamentally strong,” it stated. “These actions are part of routine regulatory oversight, not signs of instability.”

The CBN reaffirmed its commitment to open and continuous dialogue with industry stakeholders through platforms such as the Bankers’ Committee and the Body of Bank CEOs.

“Our priority remains the stability of the financial system and the creation of a robust, resilient banking sector that supports Nigeria’s economic growth agenda,” the statement concluded.

The transitional measures come at a time when Nigeria is actively working to enhance financial stability and investor confidence through reforms designed to modernize the banking sector and position it for long-term development.

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