Zenith Bank and Access Holdings have said that they would comply with the Central Bank of Nigeria’s directive on regulatory forbearance by June 30.
This was disclosed in their corporate statements filed with the Nigerian Exchange Limited on Wednesday.
This followed the June 13 circular from the CBN, which barred affected banks from paying dividends, bonuses and investments in foreign subsidiaries over regulatory forbearance in respect of the Single Obligor Limit and other credit facilities.
Reacting to the directive in a statement signed by its company secretary, Michael Otu, Zenith Bank said, “The bank has successfully raised and surpassed the new regulatory capital requirement of N500bn. The bank’s exposure under the SOL forbearance relates solely to a single obligor. We are confident that this exposure will be brought within the applicable regulatory limit on or before 30 June 2025.
“With respect to the forbearance granted on other credit facilities, the bank confirms that this applies to only two customers. We have made substantial provisions in respect of these facilities and have taken appropriate and comprehensive steps to ensure full provisioning by 30 June 2025. Upon completion, the bank will no longer be under any forbearance arrangements in this regard. The bank expects to have exited all CBN forbearance arrangements by the end of the first half of 2025.”
The lender also reassured shareholders that it would be able to meet the relevant conditions, enabling it to pay a dividend in the current year.
Access Holdings, in the statement signed by its company secretary, Sunday Ekwuochi, clarified that it is currently compliant with the single obligor limit requirement and will continue to ensure adherence to this regulation.
However, “regarding the regulatory forbearance on credit facilities, the bank will comply with the apex bank’s directive by June 30, 2025, while maintaining strong capital buffers and paying dividends to its shareholders. We assure our esteemed shareholders and stakeholders of our commitment to delivering sustainable value in the immediate and long term and thank them for their trust and support over the years,” the holding company said.
Both lenders have met and exceeded the CBN’s ₦500bn minimum capital requirement for commercial banks with international authorisation.
Meanwhile, the CBN on Tuesday reiterated its stance on the directive and noted that only a few banks are affected by the directive.
In the statement signed by the Acting Director of Corporate Communications, Sidi Ali, the CBN said, “The measures announced apply only to a limited number of banks. These include temporary restrictions on capital distributions, such as dividends and bonuses, to support retention of internally generated funds and bolster capital adequacy. All affected banks have been formally notified and remain under close supervisory engagement.”
