The Central Bank of Nigeria (CBN) has announced the temporary suspension of dividend and bonus payments for a select group of banks as part of targeted measures to bolster financial sector resilience and ensure compliance with capital adequacy requirements.

The directive, disclosed by the Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, forms part of the apex bank’s broader reform agenda launched in 2023, aimed at reinforcing Nigeria’s banking sector as a cornerstone for the country’s long-term economic development.

According to the CBN, the affected banks—whose identities were not disclosed—are institutions still recovering from pandemic-era financial support and broader macroeconomic challenges. While the majority of banks are reportedly on track to meet the revised capital requirements by the March 31, 2026 deadline, a handful require further capital consolidation.

“These temporary measures are designed to support a smooth and sustainable transition for banks still navigating post-crisis recovery,” Mrs. Sidi Ali stated. “Restricting dividends and bonuses ensures that capital is retained and reinvested to strengthen their balance sheets and reinforce institutional resilience.”

The CBN clarified that the move is not a signal of systemic fragility, but a standard regulatory intervention aligned with global best practices in risk-based supervision. By suspending shareholder returns temporarily, the central bank expects the affected institutions to enhance their capital adequacy ratios and position themselves for long-term viability.

In recent years, Nigerian banks have operated under a robust regulatory framework, widely considered more rigorous than many international counterparts. The latest policy is consistent with the CBN’s commitment to prudent oversight and a proactive approach to financial sector stability.

The central bank has formally communicated the directive to the concerned institutions and continues to maintain an open channel of engagement to facilitate seamless implementation. Normal banking operations will remain unaffected, and customer services are expected to continue without disruption.

To further promote transparency, the CBN will continue consultations with industry stakeholders to provide clarity and reinforce cooperation throughout the reform process.

“This is a proactive measure within our broader strategy to build a more stable and resilient financial system capable of supporting Nigeria’s economic transformation,” Mrs. Sidi Ali affirmed. “Our commitment to sound regulatory practices and collaborative engagement with the banking community remains steadfast.”

The central bank also reassured depositors, investors, and the general public that Nigeria’s banking system remains fundamentally sound. The current restrictions, it emphasized, are protective—not punitive—and are intended to safeguard the sector’s long-term stability and growth.