Nigeria TV Info News Report

In a circular signed by Olubukola Akinwunmi, Director of Banking Supervision at the Central Bank of Nigeria (CBN), and published on the CBN website on Monday, the apex bank unveiled its Capital Restoration Plan as a critical measure to strengthen the banking sector. This initiative is to work in tandem with other regulatory actions, such as the termination of forbearance on exposures, withdrawal of Single Obligor Limit waivers, and the suspension of dividend payments, executive bonuses, and investments in foreign subsidiaries for banks that fall short of regulatory capital requirements.

The CBN mandated that all affected banks must submit a detailed Capital Restoration Plan no later than the 10th working day following the end of each quarter, beginning from June 30, 2025. This plan must be forward-looking and include comprehensive strategies aimed at restoring full regulatory compliance.

According to the directive, the restoration plan should contain specific steps such as cost reduction measures, shrinking risky assets, significant risk transfer mechanisms, and potential changes to the bank’s business model. These efforts must remain in effect until the bank fully restores its capital adequacy and asset quality to acceptable regulatory standards.