The Central Bank of Nigeria (CBN) has issued a strict new directive aimed at strengthening the financial stability of the banking sector. In a circular dated June 13, 2025, it ordered banks currently benefiting from regulatory tolerance to suspend the payment of dividends to shareholders as well as bonuses to directors and senior managers.

This directive was transmitted in a circular with the reference number BSD/DIR/CON/LAB/018/008 dated 13 June 2025 and entitled “Letter to all banks: Temporary suspension of dividend payments, bonuses and investments in foreign subsidiaries”.

The document was signed by Olubukola A. Akinwunmi, director of the banking supervision department at CBN.

According to the central bank, this measure is part of ongoing efforts to strengthen the resilience and stability of the Nigerian banking sector. The CBN said it recently reviewed the capital positions and the adequacy of provisions of banks currently operating within approved regulatory tolerance frameworks, including with respect to credit exposures and single obligation limits (SOLs)

Given the imperative to strengthen capital reserves, strengthen balance sheet resilience, and encourage the careful retention of internal capital during this transition period, CBN issued this directive to all banks that currently benefit from SOL credit or tolerance regimes.