Zenith Bank To Exit Forbearance By June 30, Assures Dividend Payment On Track

Zenith Bank Plc has affirmed its commitment to meet all the requirements set by the Central Bank of Nigeria (CBN) under the regulatory forbearance framework, assuring shareholders that it will be in a position to pay dividends by the end of June 2025.

The assurance came in a statement issued on June 17, 2025, following the recent circular from the apex bank announcing the temporary suspension of dividend payments, bonuses, and investments in foreign subsidiaries for banks still under forbearance arrangements.

In compliance with the regulatory disclosure obligations under the Rulebook of The Exchange (2015), Zenith Bank clarified that it had already raised and surpassed the new capital threshold of ₦500 billion, ahead of the March 31, 2026 deadline set under the CBN’s recapitalisation programme.

The Bank explained that its remaining exposure under the forbearance regime relates solely to a single obligor and expressed confidence that it would regularise this by or before June 30, 2025.

It also disclosed that the forbearance on other credit facilities applies to only two customers, with substantial provisions already made and full provisioning expected to be completed by the same date.

“Upon completion, the Bank will no longer be under any forbearance arrangements in this regard,” the statement noted, adding that the institution expects to have fully exited all CBN forbearance programmes by the end of the first half of 2025.

Accordingly, Zenith Bank said it remains confident in meeting all conditions that will allow it to pay dividends to shareholders in the current financial year.

The bank’s position comes on the back of the CBN’s broader measures to strengthen the banking sector and implement its recapitalisation roadmap. According to a separate statement from the apex bank, the new measures are targeted at a small number of banks still transitioning from COVID-19-era regulatory support.

While imposing temporary restrictions on capital distributions for affected institutions, the CBN described the actions as routine, time-bound, and consistent with international norms.

“The goal is to ensure a transparent, predictable, and collaborative regulatory environment,” said Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN. “Nigeria’s banking sector remains fundamentally strong. These measures are neither unusual nor cause for concern; they are part of the orderly implementation of ongoing reforms.”

With the banking sector widely expected to complete its transition by the 2026 deadline, Zenith Bank’s readiness to exit the forbearance programme ahead of schedule reinforces its reputation for financial prudence and regulatory compliance.