In a fresh move to stabilise the banking sector, the Central Bank of Nigeria (CBN) has instructed commercial banks to submit detailed capital restoration plans as part of efforts to exit the current forbearance regime.
The directive was contained in a circular signed by Olubukola Akinwunmi, Director of Banking Supervision, and posted on the CBN’s official website on Monday.
According to the apex bank, the new requirement will work alongside a series of measures already in place, including ending waivers on forbearance exposures and Single Obligor Limits. It also prohibits affected banks from paying dividends or bonuses and from making new investments in foreign subsidiaries.
The central bank emphasised that these steps are crucial to strengthening financial system resilience and ensuring banks operate within safe capital thresholds.
CBN said, “To complement the above measures and ensure forward-looking capital planning, all affected banks are required to prepare and submit a comprehensive Capital Restoration Plan to the CBN on or before the 10th working day, following the end of the quarter with effect from June 30, 2025.
“The plan should detail the management’s proposed strategies to restore full regulatory compliance, including (but not limited to) cost optimisation initiatives, risk asset reduction, significant risk transfers, and necessary business model adaptations.
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“The plan must cover the entire period until full normalisation of capital and asset quality indicators is achieved.
“Plans submitted will be subject to regulatory review and approval, and will form the basis for continuous supervisory monitoring and engagement throughout the transition.
The Central Bank of Nigeria (CBN) has mandated banks to submit quarterly reports detailing key operational and financial metrics, in a bid to bolster regulatory transparency and enhance its supervisory oversight of the sector.
According to a circular issued by the Director of Banking Supervision, Olubukola Akinwunmi, and published on the apex bank’s website, the new reporting requirements will take effect from June 30, 2025.
Under the directive, lenders must provide comprehensive disclosures, including the provisioning status and reconciliations of affected credit exposures, capital adequacy ratio (CAR) calculations with and without transitional reliefs, and data on classification changes for restructured or impacted loan facilities. Banks are also expected to furnish detailed information on their Additional Tier 1 (AT1) instruments, covering issuance terms, utilisation, and all associated conditions.
The CBN stated that these measures are part of a robust strategy to guide the banking industry out of the forbearance regime, underscoring its commitment to macro-financial stability, sound risk management, and adherence to global standards.