Senator Osita Izunaso has called on the Central Bank of Nigeria (CBN) to reconsider its June 2025 deadline for ending loan forbearance policies, warning that strict enforcement could weaken investor confidence and destabilize the equities market.
Speaking at the 18th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja, Izunaso acknowledged the CBN’s good intentions behind the directive but urged a more realistic timeline.
“To continue to generate guaranteed investors’ confidence in the banking sector, it is appropriate that the CBN reconsider the deadline to March 2025,” he said.
He expressed concern that some banks may face difficulties meeting the recapitalisation requirement while also declaring dividends to shareholders, potentially forcing investors to sell off shares if dividend expectations are not met.
“If investors that traditionally receive dividends from banks will no longer do so this year, such investors may be forced to sell off the shares of those banks,” Izunaso cautioned.
Despite his concerns, the senator praised the ongoing synergy between the banking sector and the capital market, stating that the recapitalisation exercise has already had a positive impact.
“It has spurred increased activity in the equities market, boosted investor confidence, and created opportunities for broader participation by both local and foreign investors,” he noted.
His remarks come amid broader discussions around banking sector stability, regulatory timelines, and the need to balance reform with investor assurance.
