CBN Directs Banks to Submit Capital Restoration Plans.
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- CBN Directs Banks to Submit Capital Restoration Plans.
CBN Directs Banks to Submit Capital Restoration Plans.
The Central Bank of Nigeria (CBN) has instructed commercial banks to submit a Capital Restoration Plan as part of efforts to wind down regulatory for
bearance measures.
In a circular signed by Olubukola Akinwunmi, Director of Banking Supervision, and published on the CBN website, the apex bank stated that the restoration plans will complement existing regulatory actions. These include the end of forbearance-related exposures, the withdrawal of waivers on Single Obligor Limits, and the suspension of dividend payments, bonuses, and investments in foreign subsidiaries by affected banks.
The CBN directed that, beginning from June 30, 2025, all banks under these measures must submit their capital restoration strategies no later than the 10th working day after the end of each quarter.
The submitted plans should outline how management intends to restore full regulatory compliance. This may involve measures such as cost reduction, risk asset downsizing, risk transfer arrangements, and adjustments to business models. The plan must remain active until the bank’s capital and asset quality fully normalize.
Additionally, the CBN emphasized that all submitted plans will undergo regulatory review and approval, forming the foundation for ongoing supervision throughout the transition period.
Banks are also required to provide quarterly reports on key financial metrics. These include:
Provisioning status and reconciliations for affected credit exposures
Capital Adequacy Ratio (CAR) calculations, with and without regulatory relief
Data on classification changes for restructured loans
Full disclosure of Additional Tier 1 (AT1) capital instruments, including issuance terms and usage
The CBN stated that these measures represent a structured yet supportive approach for the final phase of exiting the regulatory forbearance regime. It added that the initiative aligns with its commitment to financial stability and responsible banking.
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Faith Kegh
Content & Editorial Manager - Leads the creation, review, and publication of high-quality news and media content. She ensures that all editorial work reflects the organization’s standards of accuracy, professionalism, and relevance, while also engaging and informing the audience.
As the key driver of TokinPoint Media LTD's editorial voice, the manager oversees content planning, assigns tasks to writers or editors, enforces deadlines, and ensures consistency across all platforms. She also plays a strategic role in aligning content with audience interests and search engine optimization (SEO) best practices.