The Central Bank of Nigeria (CBN) has said there was no cause for concern over the directive to banks under regulatory forbearance to stop paying dividends to shareholders and bonuses to directors and senior management.
CBN gave the directive on June 14, saying it aims to strengthen capital buffers and promote prudent capital retention across the sector.
Following the directive, Renaissance Capital on Monday said the banks under the regulatory forbearance are Access Holdings, First HoldCo, First City Monument Bank (FCMB), United Bank for Africa (UBA) and Zenith Bank.
Regulatory forbearance is implemented by a regulatory agency during an economic crisis to suspend some regulations temporarily, in a bid to provide relief to businesses or banks facing financial difficulties and unable to repay their loans under certain terms and conditions.
In a circular on Tuesday, Hakama Sidi Ali, the apex bank’s Acting Director, Corporate Communications, said the Nigerian banking sector remains strong and the measures were part of ongoing efforts to strengthen the banking system.
“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,” the apex bank said.
“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.
“To support a smooth transition, the CBN has allowed limited, time-bound flexibility within the capital framework, consistent with international regulatory norms. Nigeria generally maintains Risk-Based Capital requirements that are significantly more stringent than the global Basel III minimums.”
CBN said the 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 financial regulator said.
“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 regulatory environment.”
According to the apex bank, the measures are “a continuation of the orderly and deliberate implementation of reforms already underway”.
The financial regulator added that it 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.
