The measure according to the apex bank is part of ongoing efforts to strengthen the banking system.
The time-bound measures introduced for a small number of banks still completing their transition from the temporary regulatory support provided, mostly in
response to the economic impact of the COVID-19 pandemic is geared towards ensuring a smooth transition, the CBN has allowed limited, time-bound flexibility within the capital framework, consistent with international regulatory norms.

This step is part of the CBN’s broader, sequenced strategy to implement the
recapitalisation programme announced in 2023. The programme, designed to align
with Nigeria’s long-term growth ambitions, has already led to significant capital inflows
and balance sheet strengthening across the sector. 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 announced 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, a statement from the CBN added.
To support a smooth transition, the CBN has allowed limited, time-bound flexibility
The Nigeria banking system 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. The goal is to ensure a transparent, predictable, and collaborative

Nigeria’s banking sector remains fundamentally strong. 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.” A statement signed by the Ag. Director, Corporate Communications, Mrs. Hakama Sidi Ali further notes.