Izunaso, who made the call at the 18th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja, warned that enforcing the June deadline could erode investors’ confidence, as some banks may struggle to meet the recapitalisation requirement while also declaring dividends to shareholders.
“I recognise the CBN’s good intentions on directing banks to end loan forbearance by June 2025. But to continue to generate guaranteed investors’ confidence in the banking sector, it is appropriate that the CBN reconsider the deadline to March 2025.
“If investors that traditionally receive dividends from banks will no longer do so this year, such investors may be forced to sell off the shares of those banks,” he cautioned.
He commended the synergy between the banking industry and the capital market, noting that the ongoing recapitalisation exercise has spurred increased activity in the equities market, boosted investor confidence, and created opportunities for broader participation by both local and foreign investors.
