The Central Bank of Nigeria has mandated banks to submit a Capital Restoration Plan as part of its strategy to wind down the regulatory forbearance framework.

In a circular signed by the Director of Banking Supervision, Olubukola Akinwunmi, and published on the CBN website on Monday, the apex bank said the plan will complement other measures, including the withdrawal of forbearance on credit exposures and Single Obligor Limit waivers, along with a suspension on dividend payments, bonuses, and investments in foreign subsidiaries by affected banks.

CBN said, “To complement the above measures and ensure forward-looking capital planning, all affected banks are required to prepare and submit a comprehensive Capital Restoration Plan to the CBN on or before the 10th working day, following the end of the quarter with effect from June 30, 2025.

“The plan should detail the management’s proposed strategies to restore full regulatory compliance, including (but not limited to) cost optimisation initiatives, risk asset reduction, significant risk transfers, and necessary business model adaptations.

“The plan must cover the entire period until full normalisation of capital and asset quality indicators are achieved.

“Plans submitted will be subject to regulatory review and approval, and will form the basis for continuous supervisory monitoring and engagement throughout the transition.”

The CBN also stated that banks are required to submit quarterly disclosures on key financial metrics to enhance regulatory transparency and strengthen supervisory oversight.

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