Finance Regulatory and Market Updates (July 2025)

This month, we examine recent regulatory and market updates issued by key regulators in the financial services sector. These updates reflect ongoing efforts to strengthen market integrity, enhance corporate governance, safeguard the financial system, and improve the overall business environment in Nigeria.

REGULATORY UPDATES

A. CENTRAL BANK OF NIGERIA (CBN)

CBN Recapitalisation of Banks Programme: Routine Transitional Guidance such as Temporary Restriction on Dividends and Benefits, Issued for Select Institutions

In April 2024, the CBN launched a recapitalisation programme, mandating all Nigerian banks to raise their minimum capital by 2026. This move echoes earlier regulatory interventions, such as the 2004 bank reforms, but with greater alignment to global standards (Basel III),  and a focus on long-term sector resilience.

By May 2025, banks had submitted their recapitalisation plans and following its review of those submissions, the CBN issued transitional guidance on 17 June 2025. This guidance introduced temporary regulatory measures for selected banks and form part of the CBN’s broader supervisory oversight during the implementation phase of the recapitalisation exercise.