CBN Affirms Banking Sector Strength, Introduces Transitional Guidance
Oru Leonard
The Central Bank of Nigeria (CBN), has reaffirmed the strength of the country’s banking sector while introducing routine transitional guidance for select institutions. This move is part of the CBN’s efforts to strengthen the banking system and implement a recapitalization program announced in 2023.
The program aims to align with Nigeria’s long-term growth ambitions and has already led to significant capital inflows and balance sheet strengthening across the sector.
A limited number of banks will be subject to temporary restrictions on capital distributions, such as dividends and bonuses, to support retention of internally generated funds and bolster capital adequacy.
The CBN has allowed limited, time-bound flexibility within the capital framework, consistent with international regulatory norms.
Nigeria maintains Risk-Based Capital requirements that are significantly more stringent than the global Basel III minimums.
A press release signed by Hakama Sidi Ali (Mrs.) Ag. Director, Corporate Communications stated that the CBN remains committed to continuous engagement with stakeholders throughout this period via the Bankers’ Committee, the Body of Bank CEOs, and other industry forums. The goal is to ensure a transparent, predictable, and collaborative regulatory environment.
“Nigeria’s banking sector remains fundamentally strong, and these measures are neither unusual nor cause for concern. They are a continuation of the orderly and deliberate implementation of reforms already underway.
“The CBN will continue to take all necessary actions to safeguard the sector’s stability and ensure a robust, resilient financial ecosystem that supports sustainable economic growth”, Hakama assured.
