The Central Bank of Nigeria (CBN) has reiterated the strength and resilience of the country’s banking sector while introducing transitional measures for a limited number of banks still adjusting from earlier regulatory support provided in response to the COVID-19 pandemic.
In a statement issued by the acting director of corporate communications, Sidi Ali, on Tuesday, the apex bank said the move is part of its broader strategy to implement the recapitalisation programme announced in 2023.
“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,” the statement said.
It noted that most banks have either met or are on track to meet the new capital requirements well ahead of the March 31, 2026 deadline.
“These measures are part of the CBN’s broader, sequenced strategy to implement the recapitalisation programme… designed to align with Nigeria’s long-term growth ambitions,” it added.
“The programme has already led to significant capital inflows and balance sheet strengthening across the sector.”
The CBN clarified that the new measures apply only to a few banks and involve temporary restrictions on capital distributions such as dividends and bonuses, aimed at encouraging the retention of internally generated funds to strengthen capital adequacy.
“All affected banks have been formally notified and remain under close supervisory engagement,” the bank said.
To ease the transition, the CBN has permitted limited, time-bound flexibility within its capital framework, which it said aligns with international regulatory practices.
The bank pointed out that Nigeria’s risk-based capital requirements are “significantly more stringent than the global Basel III minimums.”
“These adjustments reflect a well-established supervisory process consistent with global norms,” the apex bank said. “Regulators in the U.S., Europe, and other major markets have implemented similar transitional measures as part of post-crisis reform efforts.”
The CBN said it remains committed to continuous engagement with stakeholders through the bankers’ committee, the body of bank CEOs and other forums to ensure a transparent and collaborative regulatory environment.
Reassuring the public, the statement stressed that the Nigerian banking sector remains fundamentally sound.
“These measures are neither unusual nor cause for concern; they are a continuation of the orderly and deliberate implementation of reforms already underway,” it said.
“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.”
