The Central Bank of Nigeria (CBN) has issued a directive requiring banks to submit a Capital Restoration Plan as part of its efforts to transition out of the regulatory forbearance regime.
In a circular released on Monday and signed by the Director of Banking Supervision, Olubukola Akinwunmi, the apex bank outlined several key measures designed to support financial sector stability and regulatory compliance.
According to the circular, affected banks must submit a detailed capital restoration strategy no later than the 10th working day after the end of each quarter, starting from June 30, 2025.
“The plan should outline management’s approach to achieving full regulatory compliance,” the CBN stated.
“This includes cost-cutting strategies, reduction of risk assets, significant risk transfers, and any necessary changes to business models.”
The plan must remain valid until the bank’s capital and asset quality indicators return to normal levels. All submissions will undergo regulatory review and approval, and will serve as a basis for ongoing supervisory oversight during the transition period.
These measures will work alongside the termination of prior regulatory concessions such as:Forbearance exposure waivers, Suspension of Single Obligor Limits,Restrictions on dividend payments, bonuses, and foreign subsidiary investments for non-compliant banks
The CBN emphasized that these actions form a “firm but supportive framework” aimed at ensuring macro-financial stability and reinforcing sound banking practices.
“This reflects our commitment to responsible banking and high regulatory standards,” the central bank added.
