The Central Bank of Nigeria (CBN) has reaffirmed the resilience and soundness of the country’s banking sector, as part of its broader strategy to strengthen the financial system through a phased recapitalisation programme.
In a statement issued on Tuesday and signed by the Acting Director of Corporate Communications, Hakama Sidi Ali, the apex bank disclosed that it had introduced a series of targeted, time-bound regulatory measures affecting a small number of banks still navigating the transition from the temporary support extended during the COVID-19 pandemic.
According to the CBN, these measures form part of its sequenced approach to implementing the recapitalisation initiative announced in 2023, which aims to enhance long-term financial stability and align the sector with Nigeria’s economic growth objectives.
“Fundamentally, Nigeria’s banking sector remains strong,” the statement read. “These latest steps are neither exceptional nor a cause for concern. They are simply a continuation of the structured reform agenda already in progress.”
The bank noted that the recapitalisation programme has already spurred significant capital inflows into the sector, resulting in healthier balance sheets and improved capital positions across most banks. It added that the majority of Nigerian banks have either met or are well on their way to meeting the new capital requirements well ahead of the final March 31, 2026 deadline.
For the limited number of banks still undergoing transition, the CBN has imposed temporary restrictions on capital distributions such as dividends and executive bonuses as a means to retain earnings and boost capital adequacy levels.
“These interventions are consistent with global best practices,” the statement emphasized, noting that similar transitional frameworks were used in the U.S., Europe, and other major financial markets in the wake of global financial crises.
To ease the adjustment process, the CBN has granted time-bound flexibility within its capital framework, in line with international regulatory norms. Nigeria currently maintains capital requirements that exceed the minimum standards set under the global Basel III guidelines.
The central bank confirmed that it has officially communicated these changes to the affected banks and that each remains under close supervisory oversight.
As part of its commitment to transparency and industry collaboration, the CBN pledged to maintain open channels of engagement with stakeholders through the Bankers’ Committee and other industry platforms throughout the transition period.
The apex bank reiterated its dedication to maintaining a stable, resilient, and inclusive financial system capable of supporting Nigeria’s long-term economic aspirations.
