The Central Bank of Nigeria (CBN) has barred some lenders under regulatory forbearance from paying dividends, awarding director bonuses, or making new offshore investments, citing the need to shore up capital buffers.
In a circular issued at the weekend, the Director of Banking Supervision, Olubukola Akinwunmi, said the move was part of transitional efforts to strengthen the financial sector following macroeconomic shocks.
The directive applies to banks currently benefiting from relaxed rules on credit exposures and single obligor limits a mechanism introduced to help lenders stay afloat after recent economic turbulence.
“This suspension will remain until such a time as the regulatory forbearance is fully exited and the banks’ capital adequacy and provisioning levels are independently verified to be fully compliant,” the CBN stated.
Affected institutions are now required to conserve internal resources, halt foreign expansions, and focus on restoring their prudential health.
This marks a continuation of tighter monetary oversight following earlier restrictions in 2023 and 2024, when the CBN also barred banks from using forex revaluation gains for dividends or capital projects.
The apex bank said it would monitor compliance and support banks through the transition, reaffirming its commitment to stabilising Nigeria’s banking sector.
