ABUJA, Nigeria (VOICE OF NAIJA)-The Central Bank of Nigeria has issued a directive mandating commercial banks to submit a Capital Restoration Plan as part of efforts to fully exit the regulatory forbearance regime introduced in recent years.
This was contained in a circular signed by the Director of Banking Supervision, Olubukola Akinwunmi, and published on the apex bank’s website on Monday.
The CBN stated that the restoration plan is designed to work in tandem with other regulatory measures, including the 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, affected financial institutions are required to file the detailed plan on or before the 10th working day, following the end of the quarter with effect from June 30, 2025.
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The central bank said the document must outline “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 is expected to cover the entire transition period until all relevant capital and asset quality benchmarks are met.
“Plans submitted will be subject to regulatory review and approval, and will form the basis for continuous supervisory monitoring and engagement throughout the transition,” the CBN added.
In addition to the restoration plans, banks will also be required to file quarterly reports disclosing key performance metrics.
These are meant to enhance transparency and reinforce regulatory supervision.
From June 30, 2025, banks must also provide disclosures on “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.”
The apex bank emphasized that the new compliance regime “represents 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.”