Zenith Bank Plc has addressed shareholder concerns over a Central Bank of Nigeria (CBN) directive suspending dividend payouts and bonuses for banks under regulatory forbearance.
In a June 18, 2025, statement filed with the Nigerian Exchange (NGX), the tier-1 lender emphasized that the dividend freeze is a short-term measure tied to its ongoing compliance efforts.
The CBN’s June 13, 2025, circular targets banks still operating under forbearance frameworks introduced during the COVID-19 economic crisis, aiming to strengthen financial system stability.
Zenith Bank clarified that its forbearance status stems from a single obligor exceeding the Single Obligor Limit (SOL), which it expects to fully regularize by June 30, 2025.
“With respect to the forbearance granted on other credit facilities, the Bank confirms that this applies to only two (2) customers,” the Bank disclosed, which narrows its scope of regulatory concern.
The bank has already surpassed the CBN’s new N500 billion capital requirement, signaling robust financial health despite the temporary dividend freeze.
Zenith Bank has made substantial provisions for the affected loans, with comprehensive steps underway to ensure complete resolution by June 30, 2025.
Upon resolving these issues, the bank anticipates exiting all CBN forbearance arrangements, paving the way for resumed dividend payments.
“We remain confident that the bank will satisfy all relevant conditions to enable it to pay dividends to shareholders in the current year,” Zenith Bank stated.
The CBN’s tightened prudential standards aim to bolster capital buffers and reduce systemic risk, but the directive has rattled investors, contributing to volatility in NGX banking stocks.
Zenith Bank’s proactive measures, including swift loan provisioning and compliance timelines, are designed to restore investor confidence amid market uncertainty.
Other tier-1 banks, such as FirstBank and Access Bank, face similar pressures, but Zenith’s clarity and capital strength position it favorably for a near-term resolution.
The lender’s stock performance on the NGX has faced headwinds, reflecting broader market concerns over the CBN’s regulatory tightening.
However, Zenith Bank’s transparent communication and aggressive compliance strategy underscore its commitment to navigating Nigeria’s financial system challenges in 2025.
As the June 30 deadline approaches, investors will closely monitor Zenith’s progress, with dividend reinstatement likely to catalyze positive market sentiment.
