The Central Bank of Nigeria has directed banks to submit a capital restoration plan which is part of its regulatory efforts to support the exit from the forbearance regime.
The apex bank Director of Banking Supervision, Dr Olubukola Akinniyi, In a circular signed and published on its website said 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.
According to the circular, 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 apex bank said 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 CBN also said lenders are required to submit quarterly disclosures on key metrics, which will aid regulatory transparency and support supervisory oversight.
