Zenith Bank Plc has announced a temporary suspension of dividend payments, bonuses, and further investments in foreign subsidiaries, in response to a recent directive from the Central Bank of Nigeria (CBN).
The move aligns with a CBN circular (Reference No. BSD/DIR/CON/LAB/018/008) which provides regulatory forbearance on the Single Obligor Limit (SOL) and certain other credit exposures.
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In a formal disclosure to the Nigerian Exchange Limited, Zenith Bank clarified that it has already met and exceeded the new N500 billion minimum capital requirement set by the CBN. The bank explained that its current exposure under the SOL forbearance involves only one obligor, and it is confident that the exposure will be regularised and brought within regulatory limits by June 30, 2025.
Regarding the forbearance on other credit facilities, the bank noted that only two customers are affected. 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. Upon meeting this target, Zenith Bank expects to completely exit all forms of forbearance granted by the CBN.
Despite the temporary suspension, the Bank expressed optimism that it will fulfill all regulatory conditions necessary to resume dividend payments to shareholders within the current financial year.
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The notice was signed by Michael O. Otu, Company Secretary, and listed the bank’s board members including Jim Ovia, chairman, Adaora Umeoji, Group managing director/CEO, along with other executive and non-executive directors.
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