In response to the Central Bank of Nigeria’s (CBN) recent directive halting dividend payments, bonuses, and new foreign investments for banks under regulatory forbearance, affected financial institutions have rolled out clear exit strategies to restore investor confidence and reinforce their capital positions.
The CBN’s regulatory shift, aimed at strengthening capital adequacy ratios and ensuring financial system stability, has had immediate ripple effects across the financial markets. The Nigerian stock market recorded two consecutive days of declines, as investors rushed to offload banking stocks amid uncertainty.
However, leading banks including Zenith Bank and First City Monument Bank (FCMB) have taken steps to allay investor concerns. Both institutions released statements affirming their readiness to meet CBN’s compliance requirements and sustain dividend payouts in 2025.
Zenith Bank, through a market notice signed by its Company Secretary, Michael Otu, disclosed that its exposure under the CBN’s forbearance was limited. It cited one obligor exceeding the Single Obligor Limit (SOL) and two other customers with non-performing loans (NPLs). The bank stated that it had made full provisioning plans, with completion set for June 30, 2025, in line with the CBN’s exit timeline.
The broader banking sector continues to recalibrate in response to the CBN’s policy, with stakeholders expecting tighter compliance and improved transparency to drive long-term stability.
