Zenith Bank Plc and FCMB Group Plc have allayed investors’ concerns over the potential impact of the Central Bank of Nigeria’s (CBN) recent directive on their dividend payout policies.
Both institutions have assured shareholders that despite falling within the scope of the new regulatory restrictions, their 2025 dividend distributions and future returns remain secure, citing strong capital buffers and ongoing efforts to resolve outstanding regulatory forbearance issues.
In notices filed separately with the Nigerian Exchange (NGX) on June 17, 2025, and seen by THE WHISTLER, the two financial institutions clarified their positions in the light of the CBN’s circular which suspended dividends, bonuses, and new foreign investments by banks with unresolved regulatory forbearance.
The banks confirmed they are actively working to exit these regulatory arrangements while maintaining financial resilience and commitment to shareholders.
Zenith Bank stated that its dividend policy for the 2025 financial year and beyond is not under threat.
The Tier-1 lender confirmed that it has already exceeded the new minimum capital requirement of ₦500bn announced by the apex bank.
It further explained that the forbearance it currently benefits from relates to a limited set of exposures, notably one major obligor under the Single Obligor Limit (SOL) and two other customers.
The bank revealed that it has made substantial provisions against these facilities and expects full resolution of the related exposures by June 30, 2025.
“With respect to the forbearance granted on other credit facilities, the Bank confirms that this applies only to two customers,” the bank stated.
“We have made substantial provisions in respect of these facilities and have taken appropriate and comprehensive steps to ensure full provisioning by 30 June 2025. Upon completion, the bank will no longer be under any forbearance arrangements in this regard.”
Similarly, FCMB Group assured its investors, analysts, and stakeholders that its dividend policy remains intact and is backed by robust capital planning and prudent risk management.
The Group disclosed that its Nigerian banking subsidiary’s credit exposures under CBN forbearance stood at ₦207.6bn as of May 31, 2025—down significantly from ₦538.8bn as of September 30, 2024.
These facilities, linked to three entities and two obligors, are classified as Stage 2 loans and have already been partially provisioned over the years.
The bank expects that as it exits these forbearance arrangements, a temporary spike in Stage 3 loans may occur, rising to about 11.5 per cent of the total loan book, but anticipates a decline to below 10 per cent by year-end due to projected loan book growth.
Additionally, one further obligor under the SOL will be brought within regulatory limits by September 30, 2025, aided by the recent conversion of a ₦23.1bn convertible loan to equity and expected retained earnings.
The CBN has approved the capital verification for this transaction, and further regulatory approvals are being processed to complete the capital downstreaming by July 2025.
“These measures will raise the Share Capital and Share Premium of the Bank to ₦267bn,” FCMB Group disclosed. “Capital Adequacy will remain above the regulatory minimum of 15 per cent for international banks post-forbearance.”
FCMB also emphasized that its banking subsidiary contributed 46 per cent of the Group’s 2024 dividends, with the remainder coming from non-bank subsidiaries.
The Group expressed confidence that it will sustain dividend payments for 2025 and the near future, barring any unforeseen developments.