CBN issues directive to banks
The Central Bank of Nigeria has directed banks currently enjoying regulatory forbearance to suspend the payment of dividends to shareholders and bonuses to directors and senior managers.
The order, which was issued in a circular dated June 13, is part of the central bank’s ongoing efforts to improve the financial health of banks during a transitional period.
The apex bank explained that the action will help affected institutions strengthen their capital, build resilience, and retain enough internal funds to meet their obligations.
Regulatory forbearance allows banks temporary relief in meeting certain rules, such as credit exposure limits and single obligor requirements.
As the CBN continues reviewing the capital position and provisions of these banks, it warned that no new investments in foreign subsidiaries or offshore projects should be made.
The CBN stated that the suspension will remain until the banks fully exit the forbearance phase and their financial positions are independently confirmed to meet current standards.
This latest directive is part of broader moves by the apex bank to improve oversight following recent reforms and recapitalisation plans in the banking sector.
