The Senate has called on the Central Bank of Nigeria (CBN) to extend the deadline for banks to end loan forbearance, warning that the current timeline could harm investor confidence. Chairman of the Senate Committee on Capital Market and Institutions, Senator Osita Izunaso, urged the apex bank to reconsider its June 2025 deadline and move it to March 2026, describing the latter as a more realistic timeframe.
Speaking at the 18th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja, Senator Izunaso said forcing banks to comply with the June 2025 directive could put pressure on institutions already managing recapitalisation requirements. He cautioned that if banks are unable to declare dividends this year, many shareholders may offload their stakes, potentially unsettling the equities market.
The senator praised the ongoing synergy between the banking sector and the capital market, noting that the recapitalisation drive had boosted investor confidence and spurred greater activity on the Nigerian Stock Exchange. He said the process was not only strengthening the banking sector but also creating opportunities for more local and international participation in the market.
Also addressing participants at the conference, Senator Mukhail Abiru, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, highlighted that several banks were already meeting capital adequacy requirements ahead of the deadline. He stressed that fintech growth, mobile banking innovations, and digital platforms were expanding financial inclusion and reshaping customer experience across the sector.
Abiru reaffirmed the National Assembly’s commitment to ensuring a stable and transparent financial system through supportive legislation. He emphasized that the future of banking in Nigeria would be shaped by responsible innovation, consumer protection, and the ethical use of artificial intelligence, data, and digital tools.
source: the sun