The Chairman, Senate Committee on Capital Market and Institutions, Senator Osita Izunaso, has urged the Central Bank of Nigeria (CBN) to reconsider the June 2025 deadline for banks to end loan forbearance, proposing March 2025 as a more realistic timeline.

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 recognize 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.

“The process is not only ensuring the resilience of our banking system, it is also contributing to the vibrancy of the Nigerian capital market,” he said. Also speaking, the Chairman, Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Mukhail Abiru, said the recapitalisation drive by the apex bank was strengthening capital adequacy across the sector, with some banks already meeting the minimum requirements ahead of the March 2025 deadline.

He added that the growth of fintech, mobile banking, and digital platforms was redefining customer experience and deepening financial inclusion, while Nigerian banks continued to expand their footprint across Africa.

Abiru reaffirmed the National Assembly’s commitment to providing a robust legislative framework to safeguard consumer rights, support innovation, and ensure stability in the financial system.

“The future of banking will be defined by how well institutions can combine innovation with responsibility, ensuring data protection, consumer protection, and the ethical use of artificial intelligence and digital platforms,” he said.(SUN)