Zenith, Access React to CBN’s Temporary Suspension of Dividend Payments, Bonuses, Make Promises

• Nigeria's leading financial institutions, Zenith and Access Bank, have reacted to the CBN's regulatory forbearance
• The forbearance temporarily restricts the banks from paying dividends and bonuses to their executives
• The banks have assured readiness to exit regulatory forbearance and comply with CBN’s SOL requirements

Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Zenith Bank Plc and Access Bank have responded to the recent regulatory directive from the Central Bank of Nigeria (CBN), temporarily suspending dividend payments, bonuses, and new investments in foreign subsidiaries for banks under regulatory forbearance.

In a statement released on NGX, Zenith Bank announced plans to fully exit its regulatory forbearance arrangement with the Central Bank of Nigeria by June 30, 2025.

The statement signed by its Company Secretary, Michael Otu, said the bank has successfully raised and surpassed the new regulatory capital requirement of N500 billion.

The bank message reads:

"The Bank’s exposure under the SOL forbearance relates solely to a single obligor.

"We are confident that this exposure will be brought within the applicable regulatory limit on or before 30 June 2025.

“With respect to the forbearance granted on other credit facilities, the Bank confirms that this applies to only two (2) customers. We have made substantial provisions in respect of these facilities and have taken appropriate and comprehensive steps to ensure full provisioning by 30 June 2025.

“Upon completion, the Bank will no longer be under any forbearance arrangements in this regard. The Bank expects to have exited all CBN forbearance arrangements by the end of the first half of 2025.”

The lender also assured shareholders of its ability to meet the necessary conditions to enable dividend payments within the current financial year.

Access Bank on CBN's forbearance

Similarly, reacting to CBN's action, Access Bank affirmed its readiness to exit regulatory forbearance on credit facilities by June 30, 2025.

The bank promised that it will continue to maintain strong capital buffers and sustain dividend payments.

In a statement dated June 18, 2025, Access Bank clarified that it is currently compliant with the CBN’s single obligor limit requirement, as of the date herein, and will continue to ensure adherence to this regulation.

Furthermore, regarding the regulatory forbearance on credit facilities, the Bank assured that it will comply with the apex bank’s directive by June 30, 2025, while maintaining strong capital buffers and paying dividends to its shareholders.

The tier-1 lender confirmed that it has already surpassed the new capital requirement of N500 billion introduced by the apex bank.

The statement reads:

“As of December 31, 2024, the Company’s banking subsidiary, Access Bank Plc (‘the Bank’) was the first bank to meet and exceed the Central Bank of Nigeria’s N500 billion minimum capital requirement for commercial banks with international authorisation.

“We assure our esteemed shareholders and stakeholders of our commitment to delivering sustainable value in the immediate and long term and thank them for their trust and support over the years."

Banks stop payment of dividends

Earlier, Legit.ng reported that the payment of executive bonuses, dividends, and foreign investments by banks that are currently subject to regulatory forbearance has been temporarily halted by the CBN.

This is part of a plan to strengthen financial restraint and safeguard the stability of the banking industry.

Source: Legit.ng