The Central Bank of Nigeria (CBN) has rolled out temporary, time-bound measures for a few banks still adjusting after the regulatory support provided during the COVID-19 pandemic.
According to Vanguard, Mrs. Hakama Sidi-Ali, Acting Director of Corporate Communications at the CBN, explained that these steps are part of the Bank’s ongoing efforts to strengthen Nigeria’s banking sector.
She said the measures are linked to the recapitalisation programme introduced in 2023, which focuses on supporting Nigeria’s long-term economic growth.
Sidi-Ali confirmed that the programme has already led to new capital inflows and stronger balance sheets across many Nigerian banks.
“Most banks have either completed or are well on their way to meeting the new capital requirements ahead of the March 31, 2026, deadline,” Sidi-Ali said.
The temporary measures apply to only a small number of banks and include restrictions on capital distributions such as dividends and bonuses.
These steps are meant to help the affected banks keep more of their internally generated funds and maintain healthy capital levels.
The banks involved have already been officially notified and are under close supervision by the CBN.
To support an easy transition, the CBN has allowed limited flexibility within the capital framework for a set period.
“Nigeria’s Risk-Based Capital requirements are much stricter than the minimum set under Basel III,” Sidi-Ali noted.
She pointed out that similar steps have been taken by regulators in the U.S., Europe, and other global markets after financial crises.
“The CBN is fully committed to staying engaged with all stakeholders throughout this process,” she added.
Sidi-Ali assured that these measures are in place to protect the stability and strength of Nigeria’s banking system.
Article updated 24 minutes ago. Content is written and modified by multiple authors.
