Abuja, July 9, 2025 — The Central Bank of Nigeria (CBN) has issued a directive mandating all commercial banks to submit detailed Capital Restoration Plans (CRPs) by July 14, 2025, as part of its exit strategy from COVID-era regulatory forbearance.
The circular, signed by the Director of Banking Supervision, Olubukola Akinwunmi, stipulates that affected banks must present comprehensive strategies aimed at restoring full compliance with prudential requirements. Plans should encompass actions such as cost optimization, non-performing loan reduction, risk transfer arrangements, and business model adjustments. These CRPs must encompass projections until the banks achieve normalized capital and asset quality benchmarks.
This directive coincides with the immediate termination of pandemic-era waivers, including relaxed rules on Single-Obligor Limits and deferral of dividend payouts, bonuses, and overseas investments for banks still in regulatory forbearance. The measures also temporarily allow banks to write off fully provisioned loans without the typical one-year hold requirement, to expedite balance sheet cleanup.
Aides to the CBN explained that CRPs are expected from banks previously benefiting from regulatory concessions, with submissions due within 10 working days of the June 30 quarter end—making July 14 the critical cutoff.
Industry watchers note that mid-tier and smaller banks, which remain under forbearance, may face pressure to recapitalise via mergers, asset sales, or rights issues, while top-tier lenders like Zenith and Access have reportedly met earlier capital thresholds.
