The Central Bank of Nigeria (CBN) has temporarily suspended the payment of dividends, executive bonuses and foreign investments by banks currently under regulatory forbearance.
This is part of a strategy to reinforce financial discipline and protect the stability of the banking sector.
The directive affects only those banks that are receiving temporary regulatory relief, commonly referred to as “regulatory forbearance”, a mechanism through which the CBN provides special support to institutions signalling financial stress or failing to meet key prudential standards.
These banks, according to the apex bank, must focus squarely on stabilising their operations and restoring financial health before engaging in profit distribution or expansionary ventures.
“This temporary suspension is 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 with prevailing standards.
“This supervisory measure is intended to ensure that internal resources are retained to meet existing and future obligations and to support the orderly restoration of sound prudential positions”, the apex bank stated.
