Access Holdings Plc may be unable to pay an interim dividend for the first half of 2026 as it works to resolve a regulatory breach linked to its foreign investments.
The disclosure was made during the group’s earnings call on May 5, 2026, where management provided insights into its full-year 2025 financial performance.
According to the bank, its current exposure to foreign banking subsidiaries stands at approximately 19.3 percent of shareholders’ funds—significantly above the 10 percent limit set under the Banks and Other Financial Institutions Act (BOFIA).
This breach has emerged as a key obstacle preventing dividend payments, even as the group posted record profitability for the 2025 financial year.
Speaking during the call, Group Managing Director/CEO, Innocent Ike, explained that although dividends were recommended for both the half-year and full-year 2025 periods, regulatory approval was not granted due to “specific regulatory alignment matters.”
He noted that an earlier issue affecting the half-year dividend—linked to guidelines issued by the Central Bank of Nigeria—had been resolved following the completion of an approved private placement.
However, a new compliance concern arose at the full-year stage relating to the foreign subsidiary investment cap.
“At full year 2025, a further matter was flagged under BOFIA Section 19(8)(c), which limits investment in foreign banking subsidiaries to 10 percent of shareholders’ funds. Management has been given a 12-month window to fully remediate this position,” Ike stated.
To address the breach, the group is currently implementing capital optimisation strategies, balance sheet adjustments, and a review of its governance and policy frameworks.
These efforts suggest that interim dividend payments for H1 2026 may remain on hold until regulators are satisfied that the bank’s foreign investment exposure has been reduced to within the allowable threshold.
Looking ahead, the group is considering several corrective measures, including repatriating dividends from its foreign subsidiaries and potentially divesting or restructuring parts of its international portfolio.
Investors are expected to closely monitor the pace of these adjustments, as the resolution of the regulatory issue will determine when dividend payments can resume.
Until then, uncertainty may persist, particularly for income-focused shareholders who have grown accustomed to the group’s historically consistent dividend payouts.
