Zenith Bank Plc, Nigeria’s biggest bank by tier-1 capital has assured shareholders and investors of its readiness to satisfy all relevant conditions to exit the Central Bank of Nigeria’s (CBN) regulatory forbearance by June 30, 2025.
The bank also expressed confidence in meeting shareholders’ dividend expectations in the 2025 financial year.
Zenith Bank Plc has announced that it will exit the Central Bank of Nigeria’s (CBN) regulatory forbearance framework by June 30, 2025, marking a significant milestone in its financial recovery and stability. The bank reassured shareholders that its commitment to consistent dividend payouts remains unwavering despite the transition.
The CBN had granted regulatory forbearance to Zenith Bank and other financial institutions as part of measures to cushion the impact of economic challenges, including foreign exchange volatility and asset quality pressures. The forbearance allowed banks to restructure loans and maintain liquidity without immediate regulatory penalties.
With improved financial performance and strengthened risk management, Zenith Bank confirmed it would no longer require the relief and would fully comply with standard prudential regulations starting July 1, 2025.
In a statement, the bank’s Group Managing Director, Dr. Ebenezer Onyeagwu, emphasized that exiting the forbearance program would not affect the bank’s profitability or dividend distribution.
“Zenith Bank remains in a strong financial position, with robust capital adequacy and liquidity ratios. Our shareholders can be confident that we will sustain our track record of delivering competitive dividends,” Onyeagwu stated.
Analysts have noted that Zenith Bank’s proactive loan recovery efforts and diversified revenue streams position it well for post-forbearance operations. The bank recently reported strong earnings in its Q1 2025 results, with growth in both interest and non-interest income.
Investors responded positively to the announcement, with Zenith Bank’s stock rising by 3.5% in early trading on the Nigerian Exchange (NGX). Market experts anticipate further gains as the bank demonstrates resilience amid broader economic reforms.
Zenith Bank plans to engage stakeholders in the coming weeks to outline its post-forbearance strategy, focusing on digital innovation, SME financing, and sustained shareholder value.
As the deadline approaches, industry watchers will monitor how other banks under the CBN’s forbearance program navigate their exit strategies.
2025 Business Watch Nigeria