The Group Chief Executive Officer of Guaranty Trust Holding Company (GTCO), Segun Agbaje, has said Nigerian banks had ample notice to prepare for the end of regulatory forbearance, and therefore the recent decision by the Central Bank of Nigeria (CBN) to phase it out should not come as a surprise.
Agbaje made the remarks on Thursday, July 10, during an event commemorating the company’s secondary listing on the London Stock Exchange (LSE), where GTCO officially began trading under the ticker “GTHC.”
“We had letters — there was enough time”
Addressing the issue of regulatory forbearance, a temporary relief policy introduced to ease the pressure of non-performing loans during turbulent periods, Agbaje was unequivocal.
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“I don’t think forbearance or the exit of forbearance should have come as a surprise to banks. We all basically had letters saying it would end in 2023. Therefore, we should have exited by the end of 2024. So whatever the regulators chose to do should not have come as a surprise,” he said.
The remarks come amid complaints from some bank executives who described the CBN’s timing as abrupt. But Agbaje’s comments appear to challenge that narrative, suggesting the industry had more than enough time to align with the exit timeline.
On CRR and inherited liquidity overhang
On the broader regulatory environment, Agbaje also weighed in on the controversial Cash Reserve Ratio (CRR), which banks say locks away an excessive portion of their deposits at the CBN, thereby tightening liquidity and curbing lending ability.
“CRR is a result of a liquidity overhang that was inherited by this government and this central bank. You have to find a methodical way of getting rid of the liquidity,” he said, defending the CBN’s posture. “My belief is that as the central bank sees normalized liquidity, they will reduce CRR over time. But I don’t think it’s realistic to expect them to just release CRR in the midst of what is a large liquidity overhang.”
The CBN has faced criticism for sequestering over N15 trillion in the banking sector CRR — a situation many analysts argue restricts banks’ ability to lend and weakens earnings. But Agbaje’s stance suggests an understanding of the regulator’s cautious approach to liquidity management.
Navigating tough international regulatory terrain
Agbaje also spoke about the intense regulatory scrutiny faced by GTCO during its London listing process, including requirements from the UK’s Financial Conduct Authority (FCA).
“It’s very challenging. It’s not only the exchange that you have to meet. You have to meet the FCA — it’s the financial regulator here,” he said. “Honestly, the takeaway is you have to learn how to play by the rules. Because you’ll be surprised how much pops up.”
He further stressed the importance of responsible journalism, saying misinformation — particularly in Nigeria — can complicate international due diligence exercises.
“When you do a due diligence on a company, everything that has been said about that company or the individuals pops up. And you have to defend it… But people don’t see that. So you go through a lot of that. And you have to debunk. You have to confirm. You have to explain.”
GTCO’s London listing: A West African first
GTCO’s secondary listing on the London Stock Exchange marks a significant step in its strategic global expansion. On July 9, the company announced the admission of its Ordinary Shares to the LSE’s main market, making it the first financial services institution in West Africa to dual-list shares on both the Nigerian and London exchanges.
The listing follows a fully marketed offering that raised $105 million through the issuance of 2.29 billion new ordinary shares, attracting a strong mix of long-term institutional investors.
The company’s shares are now trading under the ticker “GTHC”, with a planned shift to “GTCO” following the cancellation of its Global Depository Receipts (GDRs). The transition reflects GTCO’s current corporate structure and rebranding efforts.
GTCO’s listing comes at a time when Nigerian banks face steep regulatory demands and macroeconomic uncertainty. Yet, the firm’s ability to meet the LSE’s stringent standards — including anti-money laundering protocols, board composition rules, and audit transparency — suggests GTCO is positioning itself to attract more foreign capital and assert its footprint beyond Africa.
Agbaje’s remarks not only defend regulatory policies back home but also highlight the burden of perception that Nigerian companies must overcome on the global stage — especially in an era where public narrative largely influences investor confidence.