CBN Allays Fears Over Freezing Of Dividends, Bonuses For Banks Under Forbearance
The Central Bank of Nigeria has said that the suspension of dividends and bonuses for some banks is not an unusual occurence in the banking industry.
The alex bank had on a move to strengthen the banking system and ensure adequate capital, suspended dividend and bonus payouts for selected banks lagging in the recapitalization exercise.
The apex bank disclosed this on Tuesday in a circular seen by THE WHISTLER.
The central bank has also communicated the decision to the affected lenders, which it said are still completing their transition from the temporary regulatory support provided, mostly in response to the economic impact of the COVID-19 pandemic.
The CBN announced a recapitalization for banks back in 2023, raising capital requirements for banks with international licenses to N500bn, while those with national and regional licenses need N200bn and N50bn, respectively.
CBN said, ” 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.”
However, in a bid to provide support for lagging banks, the CBN said, “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.”
The CBN has also notified all affected banks.
According to the apex bank, the affected banks remain under close supervisory engagement.
It said, “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.
“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 central bank reiterated its commitment to continuous engagement with stakeholders throughout the period through the Bankers’ Committee, the Body of Bank CEOs, and other industry forums.
It added, “The goal is to ensure a transparent, predictable, and collaborative regulatory environment.
“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.”
CBN Allays Fears Over Freezing Of Dividends, Bonuses For Banks Under Forbearance is first published on The Whistler Newspaper
