CBN Reaffirms Banking Sector Stability, Imposes Temporary Measures on Select Institutions
The Central Bank of Nigeria (CBN) has reaffirmed the strength and stability of Nigeria’s banking sector, even as it announced routine transitional measures for a small number of banks still completing their shift from temporary regulatory support.
The disclosure was made in a press statement issued on Monday, June 17, 2025, and signed by the Acting Director of Corporate Communications at the CBN, Mrs. Hakama Sidi Ali.
According to the apex bank, the temporary measures are part of a sequenced strategy to implement the bank recapitalisation programme unveiled in 2023 a reform initiative designed to position the banking sector to better support Nigeria’s long-term economic growth.
The CBN explained that most banks have either met or are on track to meet the new capital requirements well ahead of the final implementation deadline of March 31, 2026. However, for a limited number of institutions still adjusting from pandemic era support, the Bank has introduced time bound measures.
These include temporary restrictions on capital distributions such as dividends and executive bonuses, designed to encourage the retention of earnings and strengthen capital buffers.
“All affected banks have been formally notified and remain under close supervisory engagement,” the CBN noted in the statement.
To support a smooth and internationally compliant transition, the Bank added that limited flexibility has been allowed within the capital framework, in line with global regulatory practices.
The CBN emphasized that Nigeria’s Risk Based Capital requirements remain more stringent than the Basel III minimum standards observed globally.
“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 statement read.
The CBN also reassured depositors and stakeholders that the country’s banking system remains fundamentally strong, and that the transitional measures should not be interpreted as a sign of instability or distress.
“These measures are neither unusual nor cause for concern; they are a continuation of the orderly and deliberate implementation of reforms already underway,” Mrs. Sidi Ali stated.
To maintain transparency and stakeholder engagement, the CBN pledged continued consultation through established industry platforms such as the Bankers’ Committee and the Body of Bank CEOs.
The 2023 recapitalisation programme has already led to increased investor confidence and capital inflows, with many banks recording significant improvements in their balance sheets.
Reaffirming its commitment to financial stability, the apex bank concluded: “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.”
