Zenith Bank has pressed pause on dividend payouts and executive bonuses, following a fresh directive from the Central Bank of Nigeria.
In a move framed as temporary, the bank also suspended further investments in its foreign subsidiaries— part of a broader compliance effort with new capital and credit exposure guidelines.
The CBN issued the directive under a circular (Ref: BSD/DIR/CON/LAB/018/008), which introduces temporary regulatory relief on the Single Obligor Limit (SOL) and selected credit exposures—but with strict conditions attached.
As a result, Zenith Bank now faces the challenge of adjusting its strategy to comply.
Capital Position Secured
In response, the bank informed the Nigerian Exchange Limited that it already surpassed the CBN’s new ₦500 billion minimum capital requirement.
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However, it currently exceeds the SOL with one borrower.
Zenith plans to correct this and bring the exposure within regulatory limits by June 30, 2025.
Credit Exposure Under Control
Additionally, the bank identified two more clients under the extended credit forbearance terms.
It has already made substantial provisions and now aims to complete full provisioning before the same deadline.
Once it meets these requirements, Zenith intends to exit the CBN’s forbearance framework entirely.
Consequently, to align with the directive, Zenith decided to pause dividends and bonuses.
Nevertheless, the bank remains confident.
It expects to meet all regulatory conditions and resume dividend payments before the end of the financial year.
Company Secretary Michael O. Otu signed the disclosure and included the names of key board members, such as Chairman Jim Ovia and Group Managing Director/CEO Adaora Umeoji, along with other executive and non-executive directors.