POLITICS TODAY

By Nasir Dambatta

In a strategic move to fortify Nigeria’s banking sector, the Central Bank of Nigeria (CBN) has rolled out targeted transitional measures for a select number of banks still adjusting from COVID-era regulatory reliefs.

The apex bank confirmed in a statement on Monday that the actions are part of a broader recapitalisation strategy introduced in 2023 to align the financial sector with Nigeria’s long-term growth agenda. According to the CBN, most banks have either met or are well on their way to meeting the new capital requirements ahead of the March 31, 2026 deadline.

“These are routine supervisory steps affecting only a limited number of institutions,” the CBN clarified, adding that temporary restrictions on dividends and bonuses have been placed to ensure affected banks retain internally generated funds and enhance capital adequacy. All impacted banks, it added, have been formally notified and remain under close regulatory engagement.

To ease the transition, the regulator has allowed time-bound flexibility within the capital framework—an approach consistent with international norms. Notably, Nigeria’s Risk-Based Capital requirements remain more stringent than the global Basel III minimums.

“This is not cause for alarm,” said Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications. “Nigeria’s banking sector remains fundamentally strong. What we’ve done is simply continue with deliberate reforms to ensure long-term stability.”

Global regulators, including those in the U.S. and Europe, have adopted similar measures as part of post-crisis banking reforms, the CBN noted.

The apex bank reiterated its commitment to transparency and stakeholder engagement through channels like the Bankers’ Committee and the Body of Bank CEOs. It assured the public that the sector remains resilient and well-positioned to support Nigeria’s sustainable economic growth.