The Central Bank of Nigeria (CBN) has directed all banks operating under regulatory forbearance to suspend dividend payments and bonuses to their foreign subsidiaries and investments.
The directive, issued on Friday through a circular signed by the Director of Banking Supervision, Olubukola Akinwunmi, is part of ongoing measures to stabilize the financial sector and reinforce the capital position of Nigerian banks.
According to the CBN, the temporary halt is necessary to ensure banks retain sufficient internal resources to meet financial obligations and improve their overall capital adequacy. The circular emphasized that the suspension will remain in place until each affected institution exits forbearance and is independently verified to meet all capital and provisioning requirements.
“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 circular stated.
The move aligns with the CBN’s broader efforts to enforce prudential discipline as Nigerian banks race to meet the 2026 recapitalization deadline.
This isn’t the first time the apex bank has implemented such restrictions. In 2022, the CBN extended interest rate forbearance on loans by one year. A year later, in 2023, it barred banks from using foreign exchange revaluation gains for dividends or capital expenditures.
As the 2026 deadline nears, the CBN’s latest measure signals its commitment to ensuring that banks remain resilient and well-capitalized in a volatile global financial environment.
