Business
CBN orders banks to conduct stress test from April

By Babajide Komolafe
The Central Bank of Nigeria (CBN) has directed banks to conduct a comprehensive stress test on their credit portfolios beginning from April 1, 2026, as part of measures to ensure the continued stability of the nation’s banking system.
A source at the apex bank confirmed to Vanguard that the directive was conveyed through a letter to the Chief Executive Officers of banks, noting that the communication was not meant for public circulation.
According to the source, the instruction forms part of routine regulatory oversight aimed at strengthening the resilience of the financial system.
The apex bank stated that the directive aligns with the provisions of Sections 13 and 63 of the Banks and Other Financial Institutions Act 2020, which empowers the CBN to require banks to maintain capital considered adequate to cover risks arising from their operations.
The CBN stated in the letter: “This is without prejudice to the contents of the CBN ‘Guideline on Stress Testing for Nigerian Banks’ issued in March 2019.”
It explained that banks are required to assess the resilience of their loan portfolios over a 12-month period under simulated adverse conditions.
According to the apex bank: “Banks are expected to stress the resilience of their credit portfolio over a 12-month period by simulating deterioration in asset quality, governance risk and significant change in industry dynamics such as fall in commodity prices, foreign exchange rate movement, structural shift in obligor operating market dynamics (supply chain disruption, contracting demand, etc.), portfolio variables, among others.”
The CBN added that the exercise is aimed at determining the potential impact of adverse conditions on banks’ Non-Performing Loans (NPLs), loan loss provisions and Capital Adequacy Ratio (CAR).
In terms of methodology, the apex bank directed banks to apply the stress test to all credit exposures, both on-balance sheet and off-balance sheet, including director and insider-related exposures, while assuming a staged migration of exposures to the next risk classification in line with prudential guidelines issued in July 2020.
The CBN further explained that banks must establish a baseline for the exercise.
It said: “However, where a bank’s FinA returns indicates a deterioration in specific exposures as at stress testing date, these should be adopted as the baseline amount and performance status.”
The regulator also stated: “In addition to classification of credit portfolio across performing, watchlist (specialized loans), substandard, doubtful and lost, baseline position shall include exposure at default, current provisioning level, collateral value and risk weighted position.”
According to the apex bank, the primary stress scenario should assume progressive deterioration of the credit portfolio within a 12-month period.
It added that exposures in sectors showing signs of weakening should attract additional provisioning.
The CBN stated: “Where there are signs of potential deterioration in industry dynamics, exposures shall be further stressed and deteriorated with at least an additional 10 percent provisioning applied.”
On insider-related facilities, the regulator said: “Director/Insider-Related Credits: To appropriately address governance and insider-related risks, all insider-related exposures shall be treated under a severe stress assumption and assumed to be in default. These shall be fully provided for in the banks’ stress scenarios.”
Following the exercise, banks are expected to disclose the impact of the stress test on their capital positions.
According to the CBN: “Following the conclusion of stress testing, banks are expected to report: pre-stress CAR, post-stress CAR, and capital shortfall (if any).”
The apex bank added: “It is pertinent to note that banks shall be required to raise 100% of their reported stressed capital shortfall or 50% of the shortfall computed from CBN stress analysis of the banks (whichever is higher), within an 18-month period.”
The regulator further stated: “Once communicated, this level of capital shall become the risk-based capital requirement of the bank until the next cycle of stress testing, which would take place six months after the end of the capital raise to close the shortfall in stressed CAR.”
For banks that record no capital shortfall, the CBN said: “For all banks without a shortfall in CAR from the stress-testing exercise, a cycle of 12-month stress testing will apply.”
The apex bank directed that all lenders must submit the results of their board-approved stress-testing reports on or before the close of business on April 30.
The post CBN orders banks to conduct stress test from April appeared first on Vanguard News.
Business
LPG: FG targets 5m homes for cooking gas transition — Ekpo
•Says Nigeria’s development hinges on gas utilisation
By Ediri Ejoh
The Federal Government has reaffirmed its commitment to expanding gas utilisation, saying it is targeting five million households to transition from firewood, kerosene and other biomass fuels to Liquefied Petroleum Gas (LPG) as part of efforts to cut carbon emissions and improve public health.
Speaking at the 2026 Nigeria Oil and Gas (NOG) Conference and Exhibition, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said Nigeria’s economic development depends largely on harnessing its vast gas resources.
According to him, “Nigeria sees gas as its transition fuel. We are not opposed to the global energy transition, but every country must transition based on its available resources. For Nigeria, that resource is natural gas.”
He added, “Gas is essential because its utilisation cuts across power generation, industrialisation, fertiliser production, household energy and transportation. Gas is the solution for Nigeria. That is why Mr. President created the office of the Minister of State for Gas and provided incentives under the Petroleum Industry Act (PIA) to deepen gas utilisation.”
Ekpo said, “In the past, gas was undervalued, but today it has become central to addressing climate change. We are intentionally deploying technologies that reduce carbon emissions through greater gas utilisation.”
He further stated, “Under the Decade of Gas Initiative, we have identified key projects that will bring gas closer to Nigerians. We are targeting about five million homes to switch from firewood, kerosene and biomass to LPG. This will improve household health while reducing carbon emissions. We are driving this because Nigeria has enormous gas reserves.”
Also speaking, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said ongoing fiscal and sector reforms have strengthened investor confidence.
He said, “Nigeria is strategically positioned for growth. Investors can be assured that their capital is safe and will generate returns. We are positioning the country for global competitiveness.”
Business
FG suspends enforcement of new internet platform, digital economy regulations
By Progress Godfrey
The Federal Government has suspended the enforcement of new regulations affecting internet platforms, online intermediaries and other cross-cutting digital economy issues pending the completion of a national policy review.
The directive was contained in a statement issued by the Minister of Communications, Innovation and Digital Economy Dr Bosun Tijani, on Tuesday, after a strategic meeting with the leadership of the Nigerian Communications Commission (NCC), National Information Technology Development Agency (NITDA), and Nigeria Data Protection Commission (NDPC).
Tijjani said the decision aimed to maintain the current regulatory position while work continues on a harmonised national policy and governance framework for the digital economy.
He explained that the rapid growth of the digital economy has created overlaps in the responsibilities of sector regulators, making closer coordination necessary to provide legal certainty and support investment, innovation and consumer confidence.
As part of the directive, agencies have been asked to defer the implementation or enforcement of any recently issued regulation, code, guideline, framework, directive or administrative requirement relating to internet platforms, online intermediaries and other cross-cutting digital economy issues that are under policy harmonisation.
Tijani said: “The existing regulatory status quo shall be maintained with respect to matters relating to internet platforms, online intermediaries and other cross-cutting digital economy issues currently undergoing inter-agency policy harmonisation under the Ministry’s coordination.
“Relevant agencies are to defer the implementation or enforcement of any recently issued regulation, code, guideline, framework, directive or administrative requirement relating to Internet platforms, online intermediaries or other cross-cutting digital economy matters, to the extent that such provisions concern areas currently undergoing policy harmonisation under the Ministry’s coordination.
“The above direction is without prejudice to the statutory responsibilities of the respective institutions. Accordingly, all other provisions of existing regulations, guidelines, codes and directives that fall squarely within the express mandates of the relevant agencies under extant laws shall remain fully operational and enforceable, provided they are consistent with the policy direction issued by the Minister.” The minister also announced the establishment of a Joint Technical Coordination Committee comprising representatives of the NCC, NITDA and NDPC under the Office of the Minister.
Business
Dangote Cement targets 20% emissions cut, expands capacity to 80mtpa
By Yinka Kolawole
Dangote Cement Plc has unveiled plans to cut net carbon dioxide (CO‚ ) emissions intensity by 20 per cent while expanding production capacity to 80 million tonnes per annum (mtpa) by 2030, as it pursues its ambition of becoming Africa’s most sustainable and globally competitive cement producer.
Presenting the company’s 2025 Sustainability Scorecard at its 17th Annual General Meeting in Lagos, Chairman, Emmanuel Ikazoboh, said sustainability has become a core business strategy driving growth, competitiveness and long-term value creation across its African operations.
He disclosed that the company has approved a new decarbonisation roadmap, including migrating virtually its entire Nigerian truck fleet to Compressed Natural Gas (CNG) by 2027, excluding the Gboko plant, while electric trucks will be introduced from 2026.
Ikazoboh also said the company is expanding port infrastructure at Apapa, Onne and Lekki to strengthen export capacity, while pursuing investments that will increase installed production capacity to 80mtpa by 2030, including new operations in Botswana and Zimbabwe.
On environmental performance, he said Dangote Cement has reduced CO‚ emissions intensity by 6.5 per cent from its 2021 baseline, cut energy intensity by 1.7 per cent, lowered overall energy consumption by four per cent and reduced water use by eight per cent through increased deployment of alternative fuels, energy-efficient technologies and lower clinker production.
According to him, the company also co-processed over 437,000 tonnes of waste as alternative fuel, reducing dependence on fossil fuels and improving resource efficiency.
Ikazoboh added that Dangote Cement created 625 direct green jobs during the year, increased social investment spending by 56 per cent, raised graduate trainee recruitment by 74 per cent and invested N2.1 billion in employee training.
He said the company also strengthened its ESG framework with new Artificial Intelligence Risk Management, Biodiversity and Disability Inclusion policies, while integrating 297 local vendors into its ESG-focused supply chain programme, positioning it for sustainable growth and supporting Africa’s low-carbon industrial transition.
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