The Central Bank of Nigeria (CBN) has clarified why certain banks will not be paying dividends or bonuses at the moment.
This move is part of efforts to help those banks meet the new capital requirements introduced during the recent recapitalization programme.
The CBN made this known through a circular issued on Tuesday. It stated that only a small number of banks are affected.
These banks are still adjusting after receiving temporary regulatory support during the COVID-19 period, and they have not yet met the required capital levels.
In 2023, the CBN introduced a new capital plan for banks.
Under this policy, banks with international licences must raise their capital to N500 billion, while those with national and regional licences must meet N200 billion and N50 billion, respectively.
The deadline for full compliance is March 31, 2026.
To help banks that are behind in meeting these targets, the CBN has placed a temporary freeze on dividends and bonuses.
This is to make sure they keep enough of their profits to boost their financial strength.
The CBN said most banks are on track with the recapitalization goals. It also assured that the restrictions are temporary and apply only to a few banks.
These banks are under close watch and are being guided through the transition process.
The central bank added that the decision follows international best practices, as regulators in other countries have also introduced similar measures after financial crises.
It stressed that Nigeria’s rules are already stricter than global minimums.
The CBN promised to keep working with stakeholders, including the Bankers’ Committee and bank CEOs, to maintain a clear and steady regulatory process.
It also noted that the banking sector remains strong and that the ongoing reforms are meant to support long-term economic growth.
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