Nigeria, June 18 -- As one of the measures to build stability in Nigeria's banking sector, the Central Bank of Nigeria (CBN) revealed that a closely defined subset of banks under regulatory forbearance are now under heightened supervisory scrutiny.

It is part of a comprehensive recapitalization plan to improve financial solidity in the banking sector and steer long-term economic transformation.

The move was taken on Tuesday in a formal statement by the Acting Director, Corporate Communications, Mrs. Hakama Sidi Ali of the CBN. The statement says the forbearance banks initially received a temporary regulatory reprieve due to the economic distortions created by the COVID-19 pandemic. The steps were a palliative measure to shield financial...