The Central Bank of Nigeria (CBN) has reiterated the strength and stability of the country’s banking sector while rolling out transitional measures for banks that are still adjusting from the temporary regulatory relief provided during the COVID-19 pandemic.
In a statement released on Tuesday by the acting Director of Corporate Communications, Sidi Ali, the apex bank stated that these actions are part of its phased strategy to implement the recapitalization program it announced in 2023 fully.
“As part of its ongoing efforts to strengthen the banking system, the Central Bank of Nigeria (CBN) introduced time-bound measures for a small number of banks still completing their transition from the temporary regulatory support provided, mostly in response to the economic impact of the COVID-19 pandemic,” the statement read.
The CBN assured that the majority of Nigerian banks have either already met or are on track to meet the new capital requirements well ahead of the March 31, 2026 deadline.
“These measures are part of the CBN’s broader, sequenced strategy to implement the recapitalisation programme… designed to align with Nigeria’s long-term growth ambitions,” the bank noted.
The apex bank added that the ongoing recapitalisation programme has already triggered significant capital inflows and reinforced balance sheets across the sector.
However, the CBN clarified that the newly announced transitional measures apply to only a few banks. These measures include temporary restrictions on capital distributions such as dividends and bonuses, designed to encourage the retention of internally generated funds in order to strengthen capital adequacy further.
“All affected banks have been formally notified and remain under close supervisory engagement,” the statement said.
To support this transition, the CBN has granted limited, time-bound flexibility within its capital framework. The bank said this aligns with international best practices, noting that Nigeria’s risk-based capital requirements are more stringent than the global Basel III minimums.
“These adjustments reflect a well-established supervisory process consistent with global norms. Regulators in the U.S., Europe, and other major markets have implemented similar transitional measures as part of post-crisis reform efforts,” the CBN explained.
Reassuring stakeholders, the CBN emphasised its commitment to maintaining open communication through the Bankers’ Committee—a body comprising bank CEOs—and other industry forums to ensure transparency in its regulatory approach.
“These measures are neither unusual nor cause for concern; they are a continuation of the orderly and deliberate implementation of reforms already underway,” the statement concluded.
The CBN stressed that Nigeria’s banking sector remains fundamentally sound and resilient, capable of supporting sustainable economic growth.
