The Central Bank of Nigeria (CBN) has directed commercial banks in the country to submit a capital restoration plan.
The apex bank noted that the requirement is part of regulatory efforts to support the exit from the forbearance regime.
CBN Director of Banking Supervision, Olubukola Akinwunmi, made this known in a circular published on its website on Monday.
CBN explained that the Capital Restoration Plan would complement its other measures, which include termination of forbearance exposure and Single Obligor Limits waivers, suspension of payment of dividends, bonuses, and investment in foreign subsidiaries for affected banks.
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.
“The plan must cover the entire period until full normalisation of capital and asset quality indicators is achieved.
“Effective June 30, 2025, banks are to disclose ‘detailed provisioning status and reconciliation of affected credit exposures.’
“CAR calculations with and without transitional reliefs. Classification migration data for restructured or impacted loan facilities and comprehensive disclosure of AT1 instruments, including issuance terms, usage, and related conditions.”
Accordingly, CBN added that the measures “represent a firm but supportive framework for the final phase of exiting the regulatory forbearance regime and reflect the CBN’s feat focus on macro-financial stability, responsible banking practices, and standards.”
Recall that on June 14, 2025, CBN directed Nigerian banks under regulatory forbearance to put on hold dividend payments and bonuses to foreign subsidiaries and ventures.
The development had resulted in panic in the country’s financial sector; however, CBN reaffirmed the sector’ stability.
In a report in June, Renaissance Capital had said that Zenith Bank, First Bank, Access Bank, Fidelity Bank, and FCMB have significant forbearance exposures and are among the five Nigerian banks under CBN regulatory forbearance.
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