The Central Bank of Nigeria (CBN) has affirmed the strength of the Nigerian banking sector, even as it cleared the air on the recent introduction of time-bound measures for some banks still completing their transition from the temporary regulatory support provided in response to the economic impact of the COVID-19 pandemic.

The apex bank in a statement issued on Tuesday by Mrs Hakama Sidi-Ali, Acting Director, Corporate Communications Department, disclosed that the introduction of time-bound measures for some financial institutions is part of its ongoing efforts to strengthen the banking system.

It further disclosed that this is part of its broader, sequenced strategy to implement the recapitalisation programme announced in 2023.

The statement noted that the programme, designed to align with Nigeria?s long-term growth ambitions, had already led to significant capital inflows and balance sheet strengthening across the sector.

It reads in part: ?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.

?The measures 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.

?All affected banks have been formally notified and remain under close supervisory engagement ? she said.

She said that to support a smooth transition, the CBN had 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 CBN remains fully committed to continuous engagement with stakeholders throughout this period via the Bankers? Committee, the Body of Bank CEOs, and other industry forums.?

CBN noted that these measures are neither unusual nor cause for concern, but aimed to ensure a transparent and fundamentally strong Nigerian banking sector.

The apex bank said that the measures are a continuation of the orderly and deliberate implementation of reforms already underway.

It assured that it would continue to take all necessary actions to safeguard the sector?s stability and ensure a robust, resilient financial ecosystem that supports sustainable economic growth.

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