CBN Issues Routine Transitional Guidance to Select Banks

The Central Bank of Nigeria (CBN) has introduced time-bound measures for some banks still completing their transition from the temporary regulatory support provided in response to the economic impact of the COVID-19 pandemic.

According to a statement issued by Mrs Hakama Sidi-Ali, CBN's Acting Director, Corporate Communications Department, this is part of its ongoing efforts to strengthen the banking system.

Sidi-Ali said that the step was part of the CBN's broader, sequenced strategy to implement the

recapitalisation programme announced in 2023.

She said that the programme, designed to align with Nigeria's long-term growth ambitions, had already led to significant capital inflows and balance sheet strengthening across the sector.

"Most banks have either completed or are on track to meet the new capital requirements well before the final implementation deadline of March 31, 2026.

"The measures apply only to a limited number of banks. These include temporary restrictions on capital distributions, such as dividends and bonuses to support retention of internally generated funds and bolster capital adequacy.

"All affected banks have been formally notified and remain under close supervisory engagement," she said.

She said that to support a smooth transition, the CBN had allowed limited, time-bound flexibility

within the capital framework, consistent with international regulatory norms.

"Nigeria generally maintains Risk-Based Capital requirements that are significantly 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 remains fully committed to continuous engagement with stakeholders throughout this period via the Bankers' Committee, the Body of Bank CEOs, and other industry forums," she said.

She said that the goal to ensure a transparent Nigerian banking sector remained fundamentally strong.

According to her, these measures are neither unusual nor cause for concern.

She said that they were a continuation of the orderly and deliberate implementation of reforms already underway.

She said that the CBN would continue to take all necessary actions to safeguard the sector's stability and ensure a robust, resilient financial ecosystem that supports sustainable economic growth. (NAN)