Photo caption: Zenith bank logo
Zenith Bank has announced plans to fully exit its regulatory forbearance arrangement with the Central Bank of Nigeria by June 30, 2025.
This was disclosed in a statement filed on the Nigerian Exchange Limited on Wednesday.
Zenith Bank is one of the lenders affected by the directive of the CBN freezing dividend payment, bonuses and investments in foreign subsidiaries over regulatory forbearance in respect of Single Obligor Limit and other credit facilities.
In the statement signed by its Company Secretary, Michael Otu, the bank said it 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 (2) 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.
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, 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.”
