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A
transition to Basel requirements by Nigerian banks is expected to hit dividend
payouts as lenders move to conserve and boost capital.
The
Central Bank of Nigeria (CBN) published two circulars in December 2013
indicating that it expected banks to begin adopting elements of Basel II and
III relating to market and operational risk (by June 2014) when computing
capital adequacy ratios (CAR).
After
weighing the implications of the changes on banks’ capital and feedback, the
CBN extended the adoption of the rules to September 2014.
“When
we think about the outlook over the next 12-24 months, our take is that
