The prolonged delay in the release of half-year financial statements and interim dividend declarations by Nigerian banks has sparked anxiety among investors and shareholders, particularly in the 2025 financial year.
Traditionally, Tier-1 Nigerian banks publish their H1 financial results by late July or mid-August, followed by interim dividend announcements in September. Many income-focused investors, including retirees and pensioners, rely on this predictable cycle for financial planning and portfolio stability.
However, this year has witnessed a notable deviation from that pattern. Reports indicate that the suspension or delay of interim dividends is not the result of a directive from the Securities and Exchange Commission (SEC). Instead, the move appears linked to the Central Bank of Nigeria (CBN), which is implementing sweeping regulatory reforms.
While no official circular has been issued, market intelligence suggests that the apex bank has informally advised commercial lenders to withhold dividend distributions until after ongoing regulatory assessments are completed.
Key Drivers Behind the Delay
- Regulatory Oversight Intensification
Under new leadership, the CBN is conducting closer scrutiny of banks’ financial records, particularly in areas such as foreign exchange revaluation gains, capital adequacy, and liquidity buffers. The move aims to ensure that earnings reported are sustainable and not inflated by temporary FX fluctuations. - Recapitalisation Agenda
The apex bank has also directed commercial lenders to strengthen their capital bases to support Nigeria’s ambition of building a $1 trillion economy. With several banks still in the process of raising fresh capital, paying out interim dividends at this stage could undermine recapitalisation efforts.
Although frustrating for short-term income investors, analysts argue that the move signals a commitment to long-term sector stability. By prioritising stronger capital positions, the CBN seeks to reinforce resilience in Nigeria’s financial system.
For investors, experts recommend holding positions in fundamentally strong banks, diversifying portfolios to reduce dividend reliance, and monitoring regulatory communications for clarity on timelines.
Ultimately, the delay does not signal systemic weakness. Rather, it reflects regulatory prudence intended to foster transparency, stronger capital bases, and global-standard compliance in the banking industry.
