Zenith Bank Plc has placed a temporary freeze on dividends, staff bonuses, and fresh investments in its overseas operations, in direct compliance with a recent directive issued by the Central Bank of Nigeria (CBN).
The CBN’s instruction—contained in a regulatory circular referenced BSD/DIR/CON/LAB/018/008—offers banks temporary leniency concerning the Single Obligor Limit (SOL) and certain credit exposures. As part of its adherence, Zenith Bank confirmed the immediate implementation of a hold on specific financial disbursements and activities.
“The bank’s current exposure under the SOL forbearance involves only one obligor,” Zenith said in its disclosure to the Nigerian Exchange Limited. “It is confident that the exposure will be regularised and brought within regulatory limits by June 30, 2025.”
Despite the freeze, Zenith Bank highlighted that it had already surpassed the CBN’s new capital benchmark of ₦500 billion. The lender also noted that it is dealing with only two customers under the broader credit forbearance framework and that significant provisioning has already been made against those accounts.
“Substantial provisions have already been made against these exposures, and comprehensive steps are being taken to achieve full provisioning by the same June 2025 deadline,” the statement read. “Upon meeting this target, Zenith Bank expects to completely exit all forms of forbearance granted by the CBN.”
While the bank’s decision may disappoint some shareholders in the short term, the management insists the suspension is a temporary regulatory necessity. It further expressed confidence in resuming dividend payouts within the current financial year once all stipulated conditions are fulfilled.
“The Bank expressed optimism that it will fulfill all regulatory conditions necessary to resume dividend payments to shareholders within the current financial year,” the update affirmed.
The formal notice, endorsed by Company Secretary Michael O. Otu, also listed key board members, including Jim Ovia (Chairman), Adaora Umeoji (Group Managing Director/CEO), and other directors.
This development follows broader ripples across Nigeria’s banking sector, where several banks are reviewing their dividend and bonus policies in response to the apex bank’s tightening measures. As financial institutions recalibrate, shareholders and analysts are closely monitoring how each bank navigates the evolving regulatory landscape.
