Zenith Bank is scrambling to calm investors amid CBN dividend ban and regulatory red flags.
NewsOnline Nigeria reports that Zenith Bank Plc is under growing pressure as regulatory scrutiny intensifies following a sweeping Central Bank of Nigeria (CBN) directive that has thrown its dividend policy and credit practices into question.
This Nigeria news platform relaibly gathered that the apex bank’s June 13 circular, which bans dividends, bonuses, and foreign investments for banks with unresolved forbearance issues, has placed the tier-1 lender in an uncomfortable spotlight.
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Despite its swift attempt at damage control, Zenith’s public reassurance that dividend payouts are “not in jeopardy” has done little to ease mounting investor anxiety. In a statement filed with the Nigerian Exchange on June 17, the bank admitted it remains under regulatory forbearance; albeit claiming the issue centers on a single obligor under the Single Obligor Limit (SOL), plus two others with forbearance-linked exposures.
While the bank asserts it has already exceeded the new CBN capital requirement of ₦500 billion, analysts note that regulatory forbearance is less about capital size and more about unresolved loan risks; risks that remain clouded in ambiguity in Zenith’s disclosures.
“With respect to the forbearance granted on other credit facilities, the Bank confirms that this applies only to two customers,” the statement read—an admission that, while seemingly downplayed, points to broader exposure concerns still under CBN watch.
Zenith further claimed it had made “substantial provisions” for the loans in question and expects to clean up its books by June 30, 2025. But as the deadline approaches, the bank faces mounting skepticism over whether those timelines are realistic—or simply optimistic.
Industry watchers say the bank’s attempts to put on a brave face underscore the mounting regulatory and market pressure facing lenders once considered above reproach. For Zenith, long viewed as a symbol of financial stability in Nigeria’s banking sector, being caught in the crosshairs of CBN’s forbearance crackdown is not just a reputational hit—it raises serious questions about governance, disclosure, and credit risk practices.
The CBN’s move to unwind post-COVID regulatory relief frameworks is part of broader efforts to strengthen systemic stability and enforce prudential discipline. The fact that Zenith is among the banks impacted has alarmed shareholders, many of whom had expected better from one of the country’s most capitalized and historically conservative banks.
Still, the bank insists it remains on track to meet all regulatory conditions and resume dividend payments within the year.
“We remain confident that the Bank will satisfy all relevant conditions to enable it to pay dividends to shareholders in the current year,” the bank stated.
But confidence is wearing thin. With banking stocks taking a hit across the Nigerian Exchange and trust increasingly tied to transparency, Zenith Bank’s next move—particularly how it resolves these lingering exposures could determine whether it regains investor confidence or sinks deeper into regulatory trouble.
