Abuja, Nigeria – E don happen again! The Central Bank of Nigeria (CBN) don give fresh order wey dey make di bank wey dey under wetin dem call regulatory forbearance to hold their horses when e come to dividend payments. E mean say First Bank and some other banks go suspend dividends, defer bonuses for dem big men, and no more waka-go foreign investments. Na wah!
This directive from CBN wetin come last weekend, na to make sure say dem get enough capital wey go fit serve di society and still keep di banks strong for di long run. Na di same CBN wey don dey try to tidy things up since di wahala wey COVID-19 bring, so you fit understand di seriousness to dis matter.
Olubukola Akinwunmi, di Director of Banking Supervision for di CBN talk say di goal na to strengthen capital buffers, make balance sheet stronger and ensure banks dey save money rather than scatter dem left and right. (E get wetin dem dey call ‘capital preservation’ and if you no sabi wetin e mean, na just savings in case wahala show face again.)
But wait o, no be na only First Bank dey catch dis big wahala. Other banks like Zenith Bank, Access Bank, FCMB, Fidelity Bank, Guaranty Trust Holding Company (GTCO), and United Bank for Africa (UBA) too dey among dem wey go feel di heat. If you think say dem go relax on top dis forbearance palaver, you fit think again. Di suspension go dey until CBN fit confirm say di banks get proper capital and dem dey compliant with di rules.
Dem don talk say di move na to help di banks face wetin go fit happen in di future, wey dem dey call sound prudential positions. Na serious matter matter as dem banks need to step up dem game follow di new order. CBN no wan make di same mistake wey dem make before where dem give forbearance during di COVID-19 times. Na dem, who go manage di mess if everywhere scatter again?
Nairametrics analysts don talk say dis one fit signal a shift from relief to discipline (Omo, discipline no too sweet o but e necessary.) Di Nigerian banking sector dey face some major changes as dem dey introduce new capital thresholds, wey go take effect till 2026. E mean say, banks need to buckle up, manage dem funds well because CBN dey watch dem like hawk!
The CBN don dey tighten control for banks for a while now, as dem dey cut off di risk-taking habits wey some of dem don dey exhibit. Just last month, dem gas ban banks wey dey chop forex gains for dividends. Na wa, forex no be small matter o!
At di end of di day, dis latest directive go get serious implications for Nigerian banks. With inflation and economic shakings, dem banks better kuku preserve di capital if dem wan survive di rough ride ahead. Those wey dey feel di impact of wetin di CBN dey do, follow dem well so you fit understand wetin dey go on for your attached bank!
