CBN tightens oversight on forbearance-exposed banks, reinforcing capital buffers to safeguard Nigeria’s banking sector post-COVID reforms.
The Central Bank of Nigeria (CBN) has confirmed that banks currently benefiting from forbearance measures remain under strict supervision. These institutions—impacted by credit exposure stress and Single Obligor Limit breaches—are subject to temporary restrictions on dividends, bonuses, and offshore investments as part of Nigeria’s ongoing recapitalization program launched in 2023.
CBN’s Acting Director of Corporate Communications, Hakama Sidi Ali, noted that the measures aim to reinforce capital buffers and align with global standards like Basel III. Affected banks have been formally notified, and time-bound regulatory flexibility has been introduced to ease the transition.
While major lenders like Zenith Bank, FirstBank, and Access Bank carry the highest forbearance exposures—23%, 14%, and 4% of gross loans, respectively—Tier-II banks like Fidelity and FCMB also show significant exposure. In contrast, GTCO and Stanbic IBTC report zero exposure after proactively cleaning up their books.
The CBN emphasized that the banking sector remains fundamentally strong, with these reforms ensuring resilience and sustainable growth.
Discover more from DiutoCoinNews
Subscribe to get the latest posts sent to your email.
