Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Central Bank of Nigeria (CBN) has introduced temporary rules for a few banks still adjusting after receiving special support during the COVID-19 pandemic.

This includes temporary restrictions on capital distributions, such as dividends and bonuses, to support the retention of internally generated funds and help with their capital adequacy.

Hakama Sidi-Ali, CBN’s Acting Director, Corporate Communications Department in a statement, explained that the move is part of the CBN’s plan to strengthen banks ahead of the new capital requirements March 2026 deadline.

The Banking Sector Recapitalisation Programme (the Programme) is a regulatory initiative of the CBN that requires banks to increase their minimum paid-in common equity capital to a specified amount, based on their licence category and authorisation, within a specified period

According to the CBN statement to support a smooth transition, the CBN had allowed limited, time-bound flexibility within the capital framework, consistent with international regulatory norms.

Sidi-Ali said that the step was part of the CBN’s broader, sequenced strategy to implement the recapitalisation programme.

She added 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.

Part of the statement reads:

“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."

Sidi-Ali added that the goal was to ensure a transparent Nigerian banking sector remained fundamentally strong.

The statement continues:

“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."

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 further assured 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.

Earlier, Legit.ng reported that the CBN is extending the deadline for BDC recapitalisation to December 31, 2025, has been refuted by the CBN.

The bank confirmed that the deadline remains June 3, 2025, and urged the public to verify information through official CBN sources.

BDC operators are required to meet new minimum capital requirements of N500 million for tier-two and N2 billion for tier-one operators

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Source: Legit.ng