Zenith Bank to Exit CBN Regulatory Forbearance by June 30
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Zenith Bank |
Zenith Bank Plc has announced it will completely exit the Central Bank of Nigeria’s (CBN) regulatory forbearance framework by June 30, 2025.
The disclosure was made in a corporate filing to the Nigerian Exchange Limited on Wednesday.
Background on the Forbearance
Zenith is one of several Nigerian lenders affected by a CBN directive that restricted dividend payments, bonuses, and foreign investments, particularly for banks under forbearance related to Single Obligor Limit (SOL) and other credit exposures.
In a statement signed by Company Secretary Michael Otu, Zenith Bank stated:
“The Bank has successfully raised and surpassed the new regulatory capital requirement of ₦500 billion.”
“The SOL forbearance involves just one obligor, and we are confident the exposure will be brought within limits by June 30, 2025.”
Regarding other credit facility-related forbearances:
“These involve only two customers. We have made substantial provisions and expect full provisioning by June 30.”
Shareholder Assurance & Dividend Prospects
Zenith reassured investors that, once all forbearance conditions are met, the bank will be free to resume dividend payments in the current financial year.
CBN Reaffirms Policy Applies to Few Banks
The Central Bank, through a statement by Acting Director of Corporate Communications, Sidi Ali, clarified:
“The temporary restrictions on dividends and bonuses apply to only a small number of banks.”
“These measures are meant to strengthen internal capital buffers and ensure financial stability.”
“All affected institutions have been notified and are under active supervisory monitoring.”
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