CBN’s Forbearance Directive No Surprise, Says GTCO CEO Segun Agbaje
The Group Chief Executive Officer of Guaranty Trust Holding Company (GTCO), Segun Agbaje, has stated that the Central Bank of Nigeria’s recent regulatory measures on forbearance loans should not come as a surprise to any institution in the banking sector.
According to him, Nigerian banks were given ample time to prepare for the withdrawal of forbearance support, with initial notifications issued as far back as 2023.
Speaking on July 10, 2025, during GTCO’s post-listing engagement in London, Agbaje disclosed that the Central Bank had clearly communicated to banks that the temporary regulatory relief measures, introduced during the height of economic disruptions, would be phased out by the end of 2024.
He stressed that financial institutions had sufficient time to adjust their balance sheets and restructure their exposures. “Whatever the regulators chose to do should not have come as a surprise,” Agbaje said, adding that the sector had been fully briefed on compliance expectations ahead of time.
The Central Bank had, in a circular issued on June 13, 2025, directed banks to halt dividend payments, defer executive bonuses, and suspend foreign investments if they had unresolved exposures linked to the forbearance regime or had breached single obligor limits.
The forbearance policy, originally designed to ease the burden on banks during periods of economic stress, is now being withdrawn as part of efforts to strengthen financial discipline and resilience within the banking system.
Agbaje’s comments come at a time when several banks are still grappling with the regulatory implications of the policy shift. However, he confirmed that GTCO had already completed its clean-up process and was no longer affected by the forbearance-related restrictions. He also noted that GTCO, alongside a few others like Stanbic IBTC, had proactively positioned themselves ahead of the deadline, thereby avoiding regulatory sanctions.
Beyond the forbearance directive, Agbaje also weighed in on the issue of Nigeria’s high Cash Reserve Ratio (CRR), which currently stands at one of the highest levels in Africa. He acknowledged that the CRR is a response to the excessive liquidity inherited by the current administration and the central bank.
However, he expressed optimism that as economic conditions stabilize, the Central Bank would begin to ease liquidity restrictions, making more funds available for lending and investment.
The GTCO boss made these remarks in the context of the group’s successful secondary listing on the London Stock Exchange, which he described as a significant milestone in the company’s international growth strategy. He noted that operating in a global financial market comes with higher governance expectations and stricter regulatory scrutiny, adding that GTCO remains committed to maintaining global standards and transparent stakeholder engagement.
Agbaje also emphasized the importance of responsible media conduct in Nigeria’s evolving economic climate, urging business leaders and public commentators to speak carefully and constructively about policy changes and market developments. His comments have been interpreted by analysts as a call for greater stability and maturity in financial discourse, particularly as the country navigates post-reform economic adjustments.
As the Nigerian banking sector recalibrates under the weight of tighter regulations and shifting fiscal policies, GTCO’s early compliance and strategic positioning appear to give it a competitive edge. Agbaje’s reassurance that the CBN’s actions were both expected and necessary may help to calm investor concerns and guide other banks toward more disciplined financial practices.
