Keypoints
- Access Holdings Plc has clarified that its 2025 dividend suspension was due to regulatory and prudential guidelines, not financial weakness.
- The company reported a record Profit Before Tax (PBT) of N1.01 trillion for 2025, crossing the N1 trillion threshold for the first time.
- Gross earnings rose by 13.3% to N5.53 trillion, while total assets expanded to N51.56 trillion.
- Regulatory hurdles included Section 19(8)(c) of BOFIA, which limits investments in foreign banking subsidiaries relative to shareholders’ funds.
- Management has been granted a 12-month window by regulators to address compliance issues and intends to partially divest from some subsidiaries.
Main Story
Access Holdings Plc has addressed shareholder concerns regarding the absence of dividends for the 2025 financial year, stating the decision was a matter of regulatory alignment rather than liquidity or earnings issues.
During its 2025 Investors and Earnings Call, Group Managing Director Mr. Innocent Ike explained that the group actually delivered a record-breaking performance, with Profit Before Tax growing 16.2% to N1.01 trillion.
Despite recommending dividends at both half-year and full-year stages, the company failed to secure the necessary regulatory approvals to distribute these funds.
The group identified two specific regulatory bottlenecks. A half-year constraint related to Central Bank of Nigeria (CBN) guidelines for holding companies was resolved through a private placement.
However, a full-year issue arose under the Banks and Other Financial Institutions Act (BOFIA), which restricts the level of investment in foreign banking subsidiaries compared to the size of shareholders’ funds.
To resolve this, Access Holdings plans to partially divest from certain subsidiaries while maintaining majority control. Regulators have provided a 12-month window for the group to fully address this position and resume dividend payments.
The Issues
- Strict BOFIA regulations regarding foreign investment ratios have blocked the distribution of profits despite the company’s strong cash position.
- Rapid international expansion has led to investment levels that currently exceed the prescribed limits relative to the group’s shareholders’ funds.
- The company must now manage a partial divestment strategy to meet regulatory requirements without losing control of its foreign subsidiaries.
What’s Being Said
- “The non-payment of dividends for 2025 was not due to earnings weakness or cash flow constraints, but alignment with regulatory and prudential guidelines,” said Mr. Innocent Ike, Group Managing Director.
- “Access Holdings has a strong history of consistent dividend payments, and rewarding shareholders remains a core priority for the board and management,” Ike added.
- “Our performance in 2025 demonstrates the strength of the franchise and its capacity to generate value for shareholders,” the Managing Director noted.
What’s Next
- Access Holdings will begin a partial divestment process from some banking subsidiaries over the next 12 months to satisfy BOFIA requirements.
- Management is focused on restoring dividend payments as soon as the 12-month regulatory window closes and approvals are secured.
- The group intends to further strengthen its capital and liquidity buffers to ensure future distributions remain sustainable.
Bottom Line
Access Holdings achieved its first N1 trillion profit in 2025, but shareholders must wait for a resolution of foreign investment regulatory limits before dividend payments can resume.
