The Central Bank of Nigeria (CBN) has issued a directive to banks operating under regulatory forbearance to submit a Capital Restoration Plan as part of its effort to guide a structured exit from the temporary relief measures.
In a circular signed by the Director of Banking Supervision, Olubukola Akinwunmi, and published on the CBN website on Monday, the apex bank outlined key steps to ensure affected banks return to full regulatory compliance.
The directive follows the planned termination of forbearance exposures, including:
- Withdrawal of Single Obligor Limits waivers
- Suspension of dividend and bonus payments
- Restriction on investment in foreign subsidiaries
According to the circular, each bank must submit a comprehensive Capital Restoration Plan to the CBN no later than the 10th working day following each quarter, starting June 30, 2025.
The plan must outline strategic actions such as:
- Cost optimisation initiatives
- Reduction of risk assets
- Significant risk transfers
- Business model adjustments
The CBN stated that the plans must remain in place until each institution achieves normalised capital and asset quality indicators, ensuring long-term financial stability and resilience in the banking sector.
This move underscores the regulator’s commitment to strengthening capital adequacy, restoring market discipline, and enhancing the soundness of Nigeria’s banking industry post-forbearance.
