DataPro Guides Banks on CBN Stress Test Compliance

DataPro has issued an advisory to banks regarding compliance with the Central Bank of Nigeria's (CBN) stress test directives, which will take effect on April 1, 2026. Idris Adelek, a member of DataPro's rate team and an enterprise risk management expert, emphasized the importance of conducting portfolio analyses immediately, with results needed by March 31, 2026.

The stress tests are designed to identify weaknesses in banks' credit risk exposure and will influence the risk-based capital requirements mandated by the CBN. The final stress test results must be submitted to the CBN by April 30, 2026.

The framework aligns with the Bank Financial Institutions Act (BOFIA) 2020, aiming to ensure banks maintain sufficient capital to manage risks effectively. Adelek noted that the stress tests will help determine banks' capital adequacy ratios and their ability to handle extreme economic conditions, thereby supporting Nigeria's goal of achieving a $1 trillion economy.