CBN Strengthens Financial System With New Transitional Measures For Select Banks

In a move to reinforce confidence in Nigeria’s financial system, the Central Bank of Nigeria (CBN) has introduced time-bound transitional measures targeted at a small number of banks still completing their shift from temporary regulatory support introduced during the COVID-19 era.

The measures, announced on June 17, 2025, are part of the CBN’s wider, carefully phased strategy to implement the recapitalisation programme unveiled in 2023. The programme aligns with Nigeria’s long-term growth aspirations and has already triggered significant capital inflows, as well as improved balance sheet health across the banking sector.

According to the Acting Director of Corporate Communications, Hakama Sidi Ali, most banks have either met or are well on course to meet the new capital thresholds ahead of the March 31, 2026 deadline. The latest measures apply only to a limited number of institutions that require additional time to comply.

To ensure these banks retain more internally generated capital during the transition, the CBN has placed temporary restrictions on capital distributions such as dividends and bonuses. This approach is designed to strengthen capital adequacy without disrupting operations or undermining public confidence.

The apex bank emphasized that the affected institutions have been formally notified and are under close supervisory oversight. To ease the adjustment, the CBN has also granted time-bound flexibility within its capital framework. This is in line with international regulatory practices, particularly the Basel III standards, which Nigeria’s own Risk-Based Capital requirements already exceed.

The bank clarified that the adjustments are standard supervisory tools and part of a global regulatory norm, citing similar post-crisis reforms in the United States, Europe, and other major economies. They reflect the CBN’s commitment to structured, sequenced reform rather than a sign of distress within the sector.

The CBN also reiterated its dedication to stakeholder engagement through established channels such as the Bankers’ Committee, the Body of Bank CEOs, and other industry platforms. These engagements are aimed at maintaining a transparent, predictable, and collaborative regulatory environment.

Reassuring the public, the CBN reaffirmed that Nigeria’s banking sector remains fundamentally strong. The newly announced steps are not extraordinary, but part of the ongoing, deliberate implementation of reforms that support financial system resilience and long-term economic sustainability.

The CBN concluded by stating it will continue to take all necessary actions to preserve stability and build a robust banking system capable of driving sustainable growth.