Zenith Bank Drops Hints on Dividend, Plans to Exit CBN Forbearance
Zenith Bank Plc has assured shareholders and the investing public that the financial services company will exit forbearance granted by the Central Bank of Nigeria (CBN) in the first half of the year.
In a statement, the tier-1 lender responded to the CBN directives, expressing optimism about paying dividends to its shareholders in the current financial year. The company secretary, Michael Out, pointed out that it had successfully raised and surpassed the new regulatory capital requirement of N500 billion.
It explained, “We refer to the recent circular issued by the CBN concerning regulatory forbearance in respect of Single Obligor Limit (SOL) and other credit facilities. Zenith Bank Plc wishes to provide the following clarifications in compliance with the Rulebook of the Exchange, 2015 (Issuers’ Rules).
“The bank has successfully raised and surpassed the new regulatory capital requirement of N500 billion. 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 June 30, 2025.
“With respect to the forbearance granted on other credit facilities, the bank confirms that this applies to only two customers.
“We have made substantial provisions in respect of these facilities and have taken appropriate and comprehensive steps to ensure full provisioning by June 30, 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. Accordingly, we remain confident that the bank will satisfy all relevant conditions to enable it pay dividend to shareholders in the current year.”
In a circular dated June 13, 2025, and signed by Director of Banking Supervision, Dr. Olubukola Akinwunmi, the CBN had instructed all banks currently under regulatory forbearance to suspend the payment of dividends to shareholders, bonuses to directors and senior executives, and investments in offshore subsidiaries or new foreign ventures.
The move, according to the apex bank, was part of a broader strategy to ensure that banks operating under forbearance supervision strengthened their financial resilience and fully complied with capital adequacy and loan provisioning standards.
CBN had emphasised that the restrictions were temporary and will be lifted once key conditions were met, a full exit from regulatory forbearance, and independent verification of capital and provisioning levels as being within acceptable regulatory thresholds.
The CBN directives were designed to ensure full provisioning for high-risk exposures and improve cash-based profitability metrics.
However, on Tuesday, in a move aimed at calming market jitters and ensuring a smooth transition from regulatory forbearance, the CBN affirmed the strength of the Nigerian bank sector, revealing that it issued routine transitional guidance to banks navigating post-forbearance adjustments.
Precisely, the central bank stated that the time-bound measures are for some banks still completing their transition from the temporary regulatory support it had provided them.
In a statement signed by its Acting Director, Corporate Communications, Mrs. Hakama Sidi Ali, the apex bank stated that the step was part of the CBN’s broader, sequenced strategy to implement the recapitalisation programme announced in 2023. Dangote Cement Opens N100bn Commercial Papers for Subscription
