Banks Had Ample Notice Before Forbearance Withdrawal, Says GTCO CEO Segun Agbaje

Segun Agbaje, the Group Chief Executive Officer of Guaranty Trust Holding Company (GTCO), has addressed concerns regarding the recent regulatory decision to phase out loan forbearance, stating that banks had been adequately informed in advance.

Agbaje made this clarification on Thursday, July 10, 2025, at an event celebrating GTCO’s successful share listing on the London Stock Exchange (LSE).

“I don’t think forbearance—or the exit from forbearance—should have come as a surprise to banks. We all basically received letters stating it would end in 2023. Therefore, we should have exited by the end of 2024,” Agbaje stated.

He noted that financial regulators had provided sufficient notice for banks to prepare for the policy shift.

Addressing the issue of the high Cash Reserve Ratio (CRR) and liquidity management challenges, Agbaje explained:

“I think 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 expressed optimism that, as liquidity levels normalise, the CBN may begin to ease CRR requirements.

Agbaje also highlighted the challenges of complying with the London Stock Exchange’s regulatory standards, particularly those of the UK Financial Conduct Authority (FCA). He stressed the importance of transparency and responsible media reporting.

“It’s very challenging… You have to meet the FCA…

We’ve got to use media a bit more responsibly, because when you do due diligence on a company, everything that has been said about that company or the individuals pops up, and you have to defend it.”

GTCO made history on July 9, 2025, by becoming the first financial institution in West Africa to dual-list its ordinary shares on both the Nigerian Exchange and the LSE.

The company successfully raised $105 million through the offering of 2.29 billion new ordinary shares to global institutional investors. Its shares are now trading under the symbol “GTHC” on the LSE, with plans to switch the ticker to “GTCO” following the cancellation of its Global Depository Receipts (GDRs).