Obinna Chima, Editor, THISDAY Saturday
Obinna Chima
Having navigated the hurdles of recapitalisation, Nigerian banks are now facing a new challenge: regulatory haircuts, which have put earnings under pressure.
The Central Bank of Nigeria’s (CBN) 2025 directive, which required banks to exit the regulatory forbearance loan window and fully align with prudential loan classification standards, was aimed at achieving a deeper clean-up of the banking system, improving asset quality, restoring transparency, and reinforcing long-term financial stability.
Loan loss provision, also referred to as an impairment charge, is an expense set aside to cover potential losses from unpaid loans (bad loans).
