Access Holdings Plc will resume dividend payments this year, driven by optimism around its planned capital structure adjustment and potential last-resort capital raise to eliminate the N10.99 billion regulatory shortfall that caused the group to skip its interim dividend for the first time in a decade.
According to a note by CardinalStone Research, a Sub-Saharan research firm, the holding company explained that the group could not declare an interim dividend because it was deemed non-compliant with the Central Bank of Nigeria (CBN) guideline on minimum paid-up capital and capital reserves for financial holding companies.
”The regulation requires that ‘a financial holding company shall have a minimum paid-up capital which shall exceed the aggregate minimum paid-up capital of all its subsidiaries,” the analysts said.
Although Access Holdings’ total capital, comprising share capital and reserves, stood at N598.5 billion as of H1’25, significantly higher than its subsidiaries’ combined minimum capital requirement of N61.5 billion, the apex bank excluded share premium from qualifying as paid-up capital for this assessment. This exclusion created a shortfall of N10.99 billion at the HoldCo level.
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Similarly, analysts at Chapel Hill Denham said the missed interim dividend “was not linked to regulatory forbearance, but to non-compliance with Section 7.1 of the Prudential Regulation of Financial Holding Company Groups,” which outlines the capital hierarchy requirements for HoldCos.
To remedy the gap, CardinalStone analysts said Access Holdings will have to adjust its nominal share price to realign paid-up capital in line with CBN’s hierarchy rules. This avoids shareholder dilution but requires amendments to corporate documents under the Companies and Allied Matters Act (CAMA), a process that may be delayed by regulatory procedures.
The analysts added that secondly, the holding company will have to issue additional shares to cover the N10.9 billion shortfall. This provides a quicker fix but may dilute existing shareholders.
Nevertheless, Chapel Hill Denham noted that “a positive indicator for the resumption of dividends by 2026 would be an announcement of this restructuring or the capital raise.”
Despite this, investor sentiment around Access Holdings remains firm. The lender’s dividend yield currently stands at 10.87 percent, while its shares trade at a price-to-earnings ratio of 1.65x, reflecting expectations of resumed payouts once the regulatory hurdle is cleared.