The Central Bank of Nigeria (CBN) has directed all Nigerian banks currently under regulatory forbearance to suspend the payment of dividends and bonuses to their foreign subsidiaries and ventures.
This directive was contained in a circular issued on Friday by the CBN’s Director of Banking Supervision, Olubukola Akinwunmi.
According to the apex bank, the measure is part of broader efforts to strengthen capital buffers, enhance balance sheet resilience, and encourage prudent capital retention across the Nigerian banking industry.
“This temporary suspension is until such a time as the regulatory forbearance is fully exited and the banks’ capital adequacy and provisioning levels are independently verified to be fully compliant with prevailing standards,” the circular stated.
It added, “This supervisory measure is intended to ensure that internal resources are retained to meet existing and future obligations and to support the orderly restoration of sound prudential positions.”
The move comes as banks intensify preparations to meet the CBN’s recapitalization deadline set for 2026.
This latest development follows a series of capital-related policies by the CBN, including the April 2022 extension of interest rate forbearance on loans and the September 2023 restriction on banks from using foreign exchange revaluation gains for dividends or other capital expenditures.
