The Central Bank of Nigeria (CBN) has issued new transitional guidelines targeted at a select number of banks as part of efforts to strengthen the sector. These actions, announced on June 18, 2025, mark the final phase of post-COVID-19 regulatory easing and are aimed at consolidating the progress made during that exceptional support period. The CBN reaffirmed the resilience and stability of Nigeria’s banking sector, clarifying that the new measures do not imply distress but are part of a strategic transition.
According to a circular signed by Hakama Sidi Ali, acting director of Corporate Communications, the measures include temporary restrictions on dividend payments and executive bonuses. These steps are intended to preserve capital, improve capital adequacy, and enhance long-term institutional resilience. Only a few banks are affected, and they are currently under heightened regulatory oversight to ensure compliance.
This development aligns with the CBN’s broader banking sector recapitalisation programme, introduced in 2023. The initiative is designed to ensure Nigerian banks remain robust and capable of supporting national economic growth. Most banks are reportedly on course to meet the revised capital requirements well before the March 31, 2026 deadline.
To support this transition, the CBN has embedded narrowly defined allowances into its capital framework, providing flexibility without compromising regulatory standards. These allowances comply with international best practices and are consistent with the Basel III framework, reinforcing Nigeria’s position as a proactive and risk-aware regulatory environment.
The CBN emphasized that these measures are routine and reflect global supervisory norms. It committed to ongoing engagement with stakeholders through channels like the Bankers’ Committee and the Body of Bank CEOs. Reaffirming the strength of the banking system, the apex bank stated that the reforms aim to secure a stable foundation for long-term, inclusive economic development in Nigeria.
Source: Business day