Zenith Bank Halts Dividend, Bonus Payments to Comply With CBN Directive on Capital and Credit Exposure
Zenith Bank Plc has officially announced the temporary suspension of dividend payments, staff bonuses, and new investments in its foreign subsidiaries in response to a recent directive from the Central Bank of Nigeria (CBN).
The development follows a regulatory circular issued by the apex bank (Reference No. BSD/DIR/CON/LAB/018/008), which grants forbearance on the Single Obligor Limit (SOL) and other credit exposures as part of broader efforts to stabilize Nigeria’s financial system.
In a disclosure submitted to the Nigerian Exchange Limited (NGX), Zenith Bank stated that it has already surpassed the CBN’s new N500 billion minimum capital requirement. However, the bank acknowledged that its exposure under the SOL forbearance currently involves one obligor. It expects to normalize this exposure by June 30, 2025, well within the regulatory deadline.
Credit Exposure Affects Only Two Customers
The bank also revealed that only two customers are affected by the additional credit facility forbearance measures. Substantial provisions have already been made, and the bank is on track to achieve full provisioning before the end of June 2025. Upon doing so, Zenith Bank expects to completely exit all forms of regulatory forbearance granted by the CBN.
Dividend Resumption Expected Within Financial Year
Despite the temporary hold on dividend and bonus payments, Zenith Bank expressed confidence in resuming shareholder dividends before the end of the current financial year, once all regulatory conditions are satisfied.
The announcement was signed by Michael O. Otu, the Company Secretary, and also listed key board members including Jim Ovia (Chairman) and Adaora Umeoji (Group Managing Director/CEO), along with other executive and non-executive directors.
Zenith Bank remains committed to regulatory compliance while assuring shareholders of its strong capital position and financial resilience.
