Zenith Bank Plc has indicated strong intent to resume dividend payments to shareholders as it prepares to exit the Central Bank of Nigeria’s (CBN) regulatory forbearance regime by mid-2025.
In a corporate disclosure filed with the Nigerian Exchange, the bank provided clarity on the status of its compliance with CBN’s capital adequacy and credit exposure guidelines.
According to Company Secretary Michael Out, Zenith Bank has already surpassed the new regulatory capital threshold of ₦500 billion. “The forbearance granted by the CBN on Single Obligor Limit (SOL) pertains to a single client exposure, which will be fully addressed by June 30, 2025,” the statement explained.
Furthermore, the lender disclosed that forbearance on other credit exposures involves just two customers. “We have implemented significant provisioning measures and expect to achieve full provisioning compliance by June 30, 2025. Following that, the bank will no longer operate under any forbearance obligations,” the statement added.
Zenith Bank assured investors that once it exits all CBN-imposed constraints, it will be well-positioned to distribute dividends during the current financial year.
In a circular dated June 13, 2025, and signed by the Director of Banking Supervision, Dr. Olubukola Akinwunmi, the CBN directed all banks under forbearance to suspend dividend payments, executive bonuses, and offshore investments until full compliance is achieved.
The directive is part of a broader regulatory roadmap aimed at reinforcing capital buffers and ensuring sufficient provisioning for non-performing exposures.
To ease market concerns, the apex bank reiterated the temporary nature of the restrictions, affirming that they will be lifted upon independent verification of capital strength and loan provisioning metrics.
Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, emphasized that the move is integral to the broader recapitalization agenda launched in 2023 and forms part of a sequenced plan to stabilize the Nigerian banking sector post-forbearance.
