As the March 31, 2026, deadline set by the Central Bank of Nigeria (CBN) for the recapitalisation of Nigerian banks approaches, the apex bank has directed all commercial banks to conduct stress tests, effective April 1, 2026.
This is consistent with banks operating in Nigeria depositing an estimated N61.1 trillion with the CBN, indicating excess liquidity in the financial sector.
In a letter dated March 6, 2026, and addressed to all banks, the CBN said the stress tests would determine the resilience of financial institutions.
According to an online medium that cited the letter, the apex bank added that the test would evaluate how a bank could handle extreme economic conditions, such as a severe recession or market crash.
In the letter, the CBN said the directive aligned with Sections 13 and 63 of the Bank and Other Financial Institutions Act (BOFIA) 2020, which require banks to maintain capital it considers adequate to cover the risks arising from each bank’s activities.
According to the CBN, the stress test is “without prejudice to the contents of the CBN Guideline on Stress Testing for Nigerian Banks,” issued in March 2019.”
