The Central Bank of Nigeria (CBN) has reaffirmed the strength and stability of the country’s banking sector, clarifying that recent restrictions on dividend and bonus payments affect only a few institutions still transitioning from temporary regulatory support introduced during the COVID-19 period.
In a statement dated June 17, 2025, and signed by Hakama Sidi Alli, acting director of corporate communications, the apex bank explained that the development is part of its broader, sequenced strategy to implement the banking recapitalization program announced in 2023.
The CBN added that the move aligns with the country’s long-term growth plan which has boosted the capital inflows and balance sheet strength across the sector.
“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 the retention of internally generated funds and bolster capital adequacy. All affected banks have been formally notified and remain under close supervisory engagement,” the statement reads.
CBN allowed a limited, time-bound flexibility within the capital framework to ensure a smooth transition, in line with international regulatory standards. While citing similar transitional measures in the U.S., Europe, and other countries, it was noted that the supervisory process aligns with global norms.
It also emphasised continued stakeholder engagement through the Bankers’ Committee, the Body of Bank CEOs, and other industry forums, to ensure a transparent and collaborative environment.
The regulator stresses that there is nothing unusual in the development, reassuring stakeholders that there is no cause for concern as it aligns with ongoing reforms.
Reiterated its commitment to safeguarding the financial sector and ensuring a robust and resilient financial ecosystem.
