Would you like to receive notifications on latest updates of the following headlines?

CBN Mandates Capital Restoration Plans for Banks: A Step Towards Regulatory Compliance

POSTED ON July 8, 2025 •   BUSINESS      BY Abiodun Saheed Omodara
CBN Governor, Yemi Cardoso

The Central Bank of Nigeria has instructed banks to provide a capital restoration plan as part of its regulatory measures aimed at facilitating the exit from the forbearance system. 

According to a circular issued on Monday and signed by Olubukola Akinwunmi, the CBN's Director of Banking Supervision, the Capital Restoration Plan will work alongside other steps, which include ending forbearance exposure, waiving Single Obligor Limits, suspending dividend and bonus payments, and halting investments in foreign subsidiaries for the banks involved.

The CBN stated that all affected banks must develop and submit a detailed Capital Restoration Plan by the 10th working day after the end of each quarter, starting from June 30, 2025.

The plan should outline management's strategies for achieving full regulatory compliance, incorporating initiatives for cost optimization, risk asset reduction, significant risk transfers, and necessary adjustments to business models.

The plan must encompass the duration required to fully normalize capital and asset quality indicators.

Furthermore, plans submitted will undergo regulatory review and approval and will serve as the foundation for ongoing supervisory monitoring and engagement during the transition.

The CBN also mandated that lenders provide quarterly disclosures on essential metrics to promote regulatory transparency and enhance supervisory oversight.

Beginning June 30, 2025, banks are required to disclose “detailed provisioning status and reconciliation of affected credit exposures, CAR calculations with and without transitional reliefs, classification migration data for restructured or affected loan facilities, and comprehensive disclosure of AT1 instruments, including terms of issuance, usage, and related conditions.”

The Central Bank emphasized that these measures establish a solid yet supportive framework for the final phase of exiting the regulatory forbearance regime and demonstrate the CBN’s strong focus on macro-financial stability, responsible banking practices, and standards.

 

READ ALSO
Nigerian Financial Institutions Urged to Adopt Real-Time Tools to Combat Rising Fraud
BY Abiodun Saheed Omodara July 30, 2025 0

Financial institutions in Nigeria and throughout Africa have been encouraged to implement real-time...

READ ALSO
NDLEA Conducts Public Auction of Properties Linked to Drug Trafficking
BY Abiodun Saheed Omodara July 30, 2025 0

The National Drug Law Enforcement Agency (NDLEA) held a public auction yesterday for houses that wer...

READ ALSO
FG Plans Re-Privatization of Power Discos Amidst Legislative Changes
BY Abiodun Saheed Omodara July 29, 2025 0

The Federal Government may proceed with the sale of 11 power distribution companies through a re-pri...

READ ALSO
Lagos, Ogun Set for 25-Day Power Outage: Maintenance Work Begins July 28
BY Abiodun Saheed Omodara July 28, 2025 0

Lagos State and some areas of Ogun will undergo a power outage lasting 25 days, beginning on July 28...

READ ALSO
FG Mandates GPS Coordinates for Capital Projects Over N150 Million in 2025
BY Abiodun Saheed Omodara July 25, 2025 0

The Federal Government has required that all Ministries, Departments, and Agencies provide the Globa...

READ ALSO
FG Urges Project Accountants to Prioritize Integrity in Fund Management
BY Abiodun Saheed Omodara July 25, 2025 0

The Federal Government has cautioned project accountants and financial officers to prioritize care a...

READ ALSO
Electricity Tariffs: Power Firms Push Back Against State Negotiations
BY Abiodun Saheed Omodara July 24, 2025 0

On Wednesday, energy commissioners from all 36 states announced their willingness to engage with pow...

READ ALSO
CBN Maintain Interest Rate at 27.5%
BY Abiodun Saheed Omodara July 22, 2025 0

The Central Bank of Nigeria (CBN) has decided to keep the country's Monetary Policy Rate (MPR) at 27...

OUR CHANNELS:

Oyo State Government Seizes Goods from Unregistered Veterinary Practices
BY Abiodun Saheed Omodara July 30, 2025 0

The Oyo State Government on Tuesday shut down 15 veterinary outlets and seized goods valued in milli...


Nigerians Must Go: Ghanaians Rally Against Alleged Mass Prostitution and Ritual Killings
BY Abiodun Saheed Omodara July 30, 2025 0

Some Ghanaians have expressed their discontent with Nigerians, accusing them of engaging in mass pro...


SGF Urged Northern Politicians to Postpone Presidential Aspirations Until 2031
BY Abiodun Saheed Omodara July 30, 2025 0

The Secretary to the Government of the Federation, Sen. George Akume, has urged politicians from the...


Ola Aina Reflects on Frustrating Tottenham Experience that Changed His Career Path
BY Abiodun Saheed Omodara July 29, 2025 0

A defender for the Super Eagles, Ola Aina, has shared that he nearly signed with Tottenham Hotspur w...


CAF Announces Record $10.4 Million Prize Pool for 2024 African Nations Championship
BY Abiodun Saheed Omodara July 30, 2025 0

The Confederation of African Football has revealed an unprecedented total prize pool of $10.4 millio...


Victor Osimhen Set to Join Galatasaray: €75 Million Transfer from Napoli Finalized
BY Abiodun Saheed Omodara July 30, 2025 0

Victor Osimhen is expected to arrive in Istanbul this week as Galatasaray prepares to introduce the...


Fayose Endorses Tinubu, Oyebanji for 2027 Elections
BY Abiodun Saheed Omodara July 29, 2025 0

Former Ekiti State Governor, Ayodele Fayose, has officially endorsed President Bola Tinubu and Gover...


FG Plans Re-Privatization of Power Discos Amidst Legislative Changes
BY Abiodun Saheed Omodara July 30, 2025 0

The Federal Government may proceed with the sale of 11 power distribution companies through a re-pri...


Nigerian Nurses to Strike over Pay and Working Conditions
BY Abiodun Saheed Omodara July 29, 2025 0

Healthcare services across Nigeria are set to face significant disruption on Wednesday as nurses, re...


Nollywood Star Shaffy Bello Reveals Evolving Priorities in Love and Marriage
BY Abiodun Saheed Omodara July 29, 2025 0

A seasoned actress in Nollywood, Shaffy Bello, has disclosed her disinterest in dating younger men,...


More Articles

Load more...

Menu