CBN reveals new orders to banks after suspending dividend and bonus payments, issues deadline

• The slope recapitalisation deadline acceptable by the Central Bank of Nigeria (CBN) is little than 9 months away
• Meanwhile, the apex slope has issued caller directives regarding the modulation play and forbearance
• Among different things, the latest directive suspends outgo of dividends and bonuses to directors for respective banks

Ruth Okwumbu-Imafidon, a writer with Legit.ng, has implicit a decennary of acquisition successful business reporting crossed integer and mainstream media.

As the slope recapitalisation deadline draws closer, the Central Bank of Nigeria (CBN) has issued a caller directive to each Nigerian banks.

As per the directive, the banks are required to taxable a elaborate Capital Restoration Plan wrong 10 moving days aft the adjacent of each quarter.

The directive is effectual immediately, starting with the past 4th ended connected June 30, 2025. This means that the banks person until Monday, 14 July 2025 to taxable the archetypal CRP.

The directives are effectual instantly from June 30, 2025. Photo credit: CBN
Source: UGC

What indispensable beryllium contained successful the CRP?

In a circular published connected the CBN website and signed by the Director of Banking Supervision, Dr. Olubukola Akinwunmi, the slope described the latest directive arsenic portion of steps to upwind down the regulatory forbearance model instituted during the Coronavirus pandemic.

The circular reads:

“The program should item the management’s projected strategies to reconstruct afloat regulatory compliance, including (but not constricted to) outgo optimisation initiatives, hazard plus reduction, important hazard transfers, and indispensable concern exemplary adaptations.“The program indispensable screen the full play until afloat normalisation of superior and plus prime indicators are achieved. Plans submitted volition beryllium taxable to regulatory reappraisal and approval, and volition signifier the ground for continuous supervisory monitoring and engagement passim the transition.”

All of these volition enactment Nigerian banks arsenic they reconstruct afloat prudential compliance and beforehand macro-financial stableness successful the country.

CBN terminates each waivers connected SOLs

As portion of steps to reconstruct hazard sensitivity successful recognition classification and provision, the apex slope has ended each COVID-19-era regulatory forbearance and waivers connected Single Obligor Limits (SOL).

This is effectual June 30, 2025, and volition assistance amended plus quality. In addition, CBN has waived the request that banks clasp afloat provisioned loans for 1 twelvemonth earlier write-off.

“To enactment plus prime clean-up, the request to clasp afloat provisioned loans for 1 twelvemonth earlier write-off is temporarily waived for forbearance related facilities Banks whitethorn proceed with write-offs to trim their Non-Performing Loan (NPL) ratios, provided interior governance requirements for specified write-offs are met.”

CBN suspends respective payments for Nigerian banks

The CBN circular besides reiterated the suspension of dividend payments for Nigerian banks inactive benefiting from transitional concessions nether the forbearance.

This would guarantee that the banks transmission the retained net to fortify superior and mitigate against systemic risks.

In enactment with this, the CBN besides reiterated the suspension of bonuses payable to directors and elder absorption arsenic good arsenic investments successful overseas subsidiaries.

These restrictions were listed successful an earlier circular dated June 13, 2025, and according to the CBN, they volition stay successful unit for each bank, until the slope shows that superior levels and provisions are restored to afloat regulatory compliance.

The CBN urged the banks to enactment intimately with the Banking Supervision section to guarantee compliance and show transparency by providing quarterly disclosures connected the provisioning presumption and reconciliation of affected recognition exposures.

The circular has besides temporarily removed the waiver connected single-obligor limits. Photo credit: CBN, Contributor
Source: Getty Images

However, banks similar Zenith and Access person announced that they person fully exited the forbearance arrangement by June 30, 2025.

Two banks conscionable recapitalisation deadline

In related news, 2 Nigerian banks person already met the CBN recapitalisation request up of the March 30, 2026 deadline.

Legit.ng reported that Zenith and Access Banks person met and exceeded the N500 cardinal people acceptable for planetary commercialized banks.

Others similar Ecobank, Fidelity Bank, and First Bank are connected people to bushed the deadline.

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Source: Legit.ng