CBN Tightens Capital Rules for High-Risk Banks in 2026

The Central Bank of Nigeria (CBN) has implemented new measures to strengthen the resilience of the banking sector by requiring banks with higher risk exposures to maintain larger capital buffers. This initiative is part of a risk-based capital requirement framework introduced through guidelines issued in March 2026.

The framework shifts from traditional industry-wide minimum capital adequacy thresholds to a system where individual banks' risk exposures determine their capital adequacy ratio (CAR). CBN aims to prevent financial distress similar to that which necessitated recent banking sector recapitalisation.

Dr Olubukola Akinnwunmi, the CBN Director of Banking Supervision, stated that the policy ensures banks remain resilient post-recapitalisation by aligning capital requirements with their risk profiles. Banks with significant concentration risks or governance weaknesses must maintain higher capital buffers.

The CBN will also conduct forward-looking stress tests to assess banks' capacity to withstand potential losses. Additionally, stricter enforcement of insider lending rules has been introduced to enhance corporate governance.