We will exit from CBN’s regulatory forbearance June 30 – Zenith Bank

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.

The clarification comes on the back of heightened scrutiny of Nigerian banks’ capital health following the new CBN directive that suspends dividend payments and tightens oversight for banks with outstanding forbearance-related loans or breaches of the Single Obligor Limit (SOL).

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Daily Trust reports that the apex bank in a June 13 circular froze dividends and other capital outflows for banks still operating under regulatory leniency frameworks introduced in the aftermath of COVID-19 and the attendant economic downturn.

Regulatory forbearance is a policy tool used by central banks that permits banks and financial institutions to maintain operations despite falling below required capital thresholds. It is a provisional measure that allows the restructuring of assets such as non-performing loans.

In a statement presented to the Nigeria Exchange (NGX) Group on Tuesday, June 17, 2025, Zenith Bank stated that its exposure under the Single Obligor Limit (SOL) forbearance relates solely to a single obligor, pointing out that this exposure will be brought within the applicable regulatory limit on or before June 30, 2025.

The bank also confirmed that the forbearance granted on other credit facilities applies to only two (2) of its customers, noting that it has made substantial provisions in respect of these facilities and taken appropriate and comprehensive steps to ensure full provisioning by June 30, 2025.

The bank further emphasised its strong financial footing, stating that it has successfully raised and surpassed the new regulatory capital requirement of N500 billion, and is therefore well positioned to continue delivering value to all its key stakeholders.

Zenith Bank stated that it has continued to distinguish itself in the Nigerian financial services industry through superior service offering, unique customer experience and sound financial indices.

“The bank has remained a clear leader in the digital space with several firsts in the deployment of innovative products, solutions and an assortment of alternative channels that ensure convenience, speed and safety of transactions.”