Forbearance: Zenith Bank Hits Capital Milestone, Signals Path for 2025 Dividend Payout by June 30
Zenith Bank Plc has reaffirmed its position as one of Nigeria’s most capitalized and resilient financial institutions, confirming that it has met the Central Bank of Nigeria’s new minimum capital requirement of ₦500 billion — well ahead of deadline — and is on course to fully exit regulatory forbearance arrangements by June 30, 2025.
The announcement, made in a statement to the Nigerian Exchange Ltd. (NGX) on Tuesday, comes in response to a recent CBN circular (Ref: BSD/DIR/CON/LAB/018/008), which outlined expectations for banks still operating under regulatory forbearance, especially around Single Obligor Limit (SOL) and other credit exposure risks.
Capital Requirement? Exceeded.
Zenith Bank revealed that it has successfully raised and surpassed the apex bank’s new capital threshold, positioning it comfortably ahead of many peers in the banking consolidation race ignited by the CBN’s 2024 recapitalization directive.
“We have successfully raised and surpassed the new regulatory capital requirement of ₦500 billion,” the bank stated.
This achievement is significant as the CBN’s capital directive is part of broader efforts to strengthen the Nigerian financial system and prepare banks for greater resilience amid macroeconomic headwinds and global shocks.
Regulatory Forbearance: Wrapping Up Loose Ends
While the bank remains under limited forbearance arrangements, it emphasized that the Single Obligor Limit concern applies to just one client, and that all necessary adjustments are being made to bring the exposure within regulatory thresholds by the June 30 deadline.
Similarly, for other credit facilities under temporary regulatory leniency, Zenith clarified that:
- Only two customers are involved,
- Substantial provisioning has already been made,
- And full provisioning will be completed by the end of the second quarter.
“Upon completion, the bank will no longer be under any forbearance arrangements in this regard,” it affirmed.
Shareholder Confidence and Dividend Outlook
Zenith Bank’s timely compliance and proactive provisioning strategy also signal positive news for shareholders, with the bank expressing confidence that it will meet all necessary conditions to pay dividends for the current financial year.
This comes at a critical time, as investors seek stability and transparency amidst market volatility and recapitalization-induced realignments across the banking landscape.
BRANDECONOMY Insight:
Zenith Bank’s update underscores its status as one of Nigeria’s most systemically important financial institutions, demonstrating not only capital strength but also prudent risk management practices. In an environment where multiple Tier-1 and Tier-2 banks are racing to shore up capital through rights issues, mergers, and tiered recap strategies, Zenith’s early compliance gives it strategic breathing room — and potential leverage for growth-oriented acquisitions or market expansion.
With the CBN recap deadline of March 2026 looming large, Zenith’s position sends a strong signal to the market: it’s not just playing defense — it’s positioning to dominate.
