…Issues targeted transitional guidelines for select banks
The Central Bank of Nigeria (CBN) has reaffirmed the resilience and soundness of the Nigerian banking sector while unveiling a set of targeted transitional measures affecting a select number of financial institutions.
These measures represent the final phase in winding down the temporary regulatory accommodations introduced in the aftermath of the COVID-19 pandemic, and are intended to consolidate the gains achieved during that period of exceptional support.
The measures, announced in a circular signed by Hakama Sidi Ali, acting director of Corporate Communications, are not broad-based but instead apply to a limited group of banks. They include temporary restrictions on actions such as the payment of dividends and the disbursement of bonuses to executive management.
According to the CBN, these restrictions are meant to conserve internal capital, strengthen capital adequacy, and bolster long-term institutional resilience. The banks affected have been formally notified and are currently under enhanced regulatory engagement and close supervisory monitoring.
The regulatory move forms part of the CBN’s sequenced and structured implementation of the banking sector recapitalisation programme, which was formally introduced in 2023. The programme is designed to align the banking sector with Nigeria’s broader economic development goals and ensure banks remain well-capitalised in line with the evolving demands of a growing economy. The majority of Nigerian banks have either met or are firmly on track to meet the new capital thresholds ahead of the March 31, 2026 deadline set by the apex bank.
To support this transition, the CBN said it is providing narrowly defined allowances within its capital framework, ensuring flexibility without compromising prudential standards. These provisions are fully aligned with global best practices and reflect the CBN’s commitment to maintaining a forward-looking, risk-based regulatory environment. In fact, Nigeria’s Risk-Based Capital requirements already exceed the minimum benchmarks set by the Basel III framework, highlighting the regulator’s proactive posture in safeguarding the financial system.
The central bank stressed that these actions are entirely routine within the broader framework of supervisory oversight and reflect international standards.
Emphasising its ongoing commitment to transparency and collaboration, the CBN reaffirmed that it will continue to engage stakeholders across the financial industry through established platforms including the Bankers’ Committee, the Body of Bank CEOs, and other relevant industry groups. The engagement is expected to ensure that regulatory changes are well-understood, predictable, and effectively implemented with industry input.
The CBN restates that Nigeria’s banking system remains fundamentally strong, stable, and well-capitalised. The transitional guidelines announced do not signal distress within the system but are instead part of a broader, methodical reform process aimed at future-proofing the sector. The apex bank underscored that these steps are designed to ensure that the banking industry remains a solid foundation for inclusive, sustained economic growth and national development.
