In an update published by Premium Times, the Central Bank of Nigeria (CBN) has directed all commercial and merchant banks to commence comprehensive stress tests on their credit portfolios effective immediately. This regulatory move is part of the “New Era” post-recapitalization strategy aimed at ensuring the banking sector remains resilient against potential global and domestic economic shocks.
The directive requires banks to assess their ability to withstand scenarios involving high interest rates, currency fluctuations, and a potential rise in non-performing loans. The CBN stated that this proactive measure is essential for maintaining public confidence in the financial system after several months of aggressive monetary tightening and structural reforms.
CNBC Africa emphasized that “this marks a new era for Nigerian banks,” while Vanguard quoted financial experts who stated that “the stress tests will expose vulnerabilities in middle-tier banks that may need further consolidation.”
Echotitbits take: After the frenzy of meeting new capital requirements, the CBN is now shifting focus to the quality of bank assets. This is a clear signal that the regulator will not tolerate “paper strength”—banks must prove they have the liquidity to back their new valuations.
Source: Business Day – https://businessday.ng/pro/article/banks-face-april-deadline-in-new-capital-stress-regime/, April 7, 2026
Photo credit: Business Day
