The Central Bank of Nigeria (CBN) has unveiled a set of time-bound measures specifically designed to support banks as they transition away from the temporary regulatory accommodations provided during the height of the COVID-19 pandemic. This strategic move is intended to further fortify the resilience and stability of the Nigerian banking system, aligning with the CBN’s broader recapitalization program announced in 2023.
According to a statement released by Mrs. Hakama Sidi-Ali, the CBN’s Acting Director of Corporate Communications Department, the majority of banks are making significant progress and are on schedule to meet the new capital requirements well in advance of the final implementation deadline of March 31, 2026.
These targeted measures will apply to a limited number of banks and primarily involve temporary restrictions on capital distributions, such as the payment of dividends and bonuses. The objective is to encourage these banks to retain internally generated funds, thereby bolstering their capital adequacy and overall financial health.
Mrs. Sidi-Ali emphasized that these adjustments are part of a well-established supervisory process, consistent with international best practices and global norms. The CBN has also incorporated a degree of flexibility within the capital framework to ensure a smooth and orderly transition for the affected banks.
She further noted that Nigeria generally maintains Risk-Based Capital requirements that are significantly more stringent than the global Basel III minimums, underscoring the CBN’s commitment to maintaining a robust and transparent banking sector.
The CBN has reiterated its commitment to ongoing engagement with stakeholders throughout this period, utilizing platforms such as the Bankers’ Committee, the Body of Bank CEOs, and other industry forums to ensure open communication and collaboration.
