|By Adejumo Adekunle-
The Central Bank of Nigeria (CBN) has directed all commercial banks under regulatory forbearance to submit a Capital Restoration Plan by the 10th working day after each quarter, beginning from June 30, 2025.
The directive, announced by the CBN’s Director of Banking Supervision, Olubukola Akinwunmi, was issued through a circular published on the apex bank’s website on Monday. It marks a critical step in Nigeria’s efforts to transition the banking sector out of the forbearance regime introduced to cushion previous economic shocks.
According to the circular, the Capital Restoration Plan must outline specific strategies to help banks restore full regulatory compliance. These strategies include cost optimisation, reduction of risky assets, significant risk transfers, and necessary changes to business models.
CBN emphasised that the plan should remain in effect until the affected banks achieve full normalisation of their capital and asset quality indicators.
“Effective June 30, 2025, banks are to disclose detailed provisioning status and reconciliation of affected credit exposures,” the circular stated. This includes the capital adequacy ratio (CAR) calculated with and without transitional reliefs, migration data for restructured loans, and full disclosures of Additional Tier 1 (AT1) instruments, including their issuance terms and conditions.
The apex bank added that the directive is part of broader regulatory efforts to ensure forward-looking capital planning and macro-financial stability.
“These measures represent a firm but supportive framework for the final phase of exiting the regulatory forbearance regime and reflect the CBN’s focus on macro-financial stability, responsible banking practices, and standards,” the statement read.
Earlier on June 14, 2025, the CBN had issued a stern directive to banks under regulatory forbearance to suspend all dividend and bonus payments, as well as investments in foreign subsidiaries. The move, though met with concern across the financial sector, was aimed at safeguarding the system’s long-term health.
Despite initial panic, the CBN has consistently reassured stakeholders of the sector’s resilience.
In a recent report by Renaissance Capital, five Nigerian banks — Zenith Bank, First Bank, Access Bank, Fidelity Bank, and FCMB — were identified as having significant forbearance exposures and are expected to be directly impacted by the new measures.
As the June 30 deadline approaches, industry observers are closely watching how these banks will respond to the CBN’s mandate.
