Connect with us

News

Major Banks May Halt Dividends Till 2028

Published

on

Major Banks May Halt Dividends Till 2028

Access Holdings Plc, Zenith Bank Plc, and First Bank Holdings may suspend dividend payments until 2028, as Nigeria’s top banks confront regulatory pressure to rebuild capital buffers to fully provide for legacy forbearance exposures, according to a new report by Renaissance Capital.

The report, released June 16, follows a directive by the Central Bank of Nigeria (CBN) on June 13, which instructed banks to pause dividends, defer executive bonuses, and halt offshore expansion until they’ve adequately provisioned for forbearance loans and resolved breaches of single obligor limits.

Renaissance analysts say the order could result in a multi-year dividend drought for some of the country’s largest lenders.

“Our base case is that the banking arms of AccessCorp, ZenithBank, and FirstHoldco will not resume dividend payments before 2028,” the note said. “Most of their near-term cash flows will be directed towards absorbing provisioning costs and recapitalisation.”

Although these lenders reported strong accounting profits in 2024 — N635 billion for Access and N867 billion for Zenith — both posted negative cash profits, largely due to unrealised interest income on Stage 2 loans and FX revaluation gains.

FirstHoldco’s cash position also turned negative in Q1 2025, following challenges with a single large non-performing loan.

GTCO, by contrast, fully provisioned its exposures earlier and is expected to maintain uninterrupted dividend payments, supported by positive cash profits of N1.2 trillion in FY24.

UBA is also expected to resume payouts by 2026, given its manageable exposure and steady liquidity.

According to the report, six lenders hold a combined forbearance exposure of $3.5 billion with Zenith Bank being the most exposed.

“We estimate regulatory forbearance exposures at $304 million, $887 million, $134 million, $296 million, $282 million, and $1.6 billion for ACCESSCORP, FIRSTHOLDCO, FCMB, FIDELITYBK, UBA, and ZENITHBANK, respectively,” the report shows.

The dividend suspension comes amid additional strain from the CBN’s move to raise the Cash Reserve Ratio (CRR) to 50 percent, which Renaissance estimates cost the banking sector N840 billion in income last year alone.

With just 20 percent of customer deposits left deployable for lending, analysts warn the capital build-up may not translate into real credit growth.

“The 50% CRR regime is proving more detrimental to banks’ profitability and liquidity,” the analysts said in the report.

”From an operational perspective, a CRR reduction would enhance banking sector liquidity, reduce reliance on commercial paper issuance for liquidity management, and improve overall financial system efficiency.”

Businessday.ng

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Ibom Air Saga: 5 Revelations Comfort Emmanson Made On Altercation With Air Hostess

Published

on

The Ibom Air passenger at the centre of a viral altercation, Comfort Emmanson, has finally spoken out about the incident that led to her being banned from flying with Nigerian airlines.

In an emotional statement, Emmanson recounted her experience and shared shocking details about what truly happened on the flight.

Here are five key revelations she made:


1. Faulty Phone Sparked the Dispute
Emmanson revealed that the entire confrontation began because one of her phones had a faulty power button.

She said she tried to explain to the flight attendant, Juliana, that she could only place it in flight mode.

A fellow passenger later helped her switch it off, yet Juliana allegedly left her with a warning: “You will see.”

2. She Was Stopped from Alighting Without Explanation
After landing in Lagos, Emmanson claimed she was prevented from leaving the aircraft despite doing nothing wrong.

According to her, Juliana blocked her way without clarifying the reason, triggering confusion and frustration.

3. She Was Dragged, Humiliated, and Recorded
She said her frontal hairpiece was pulled, her clothes were torn, and she was insulted.

In the chaos, videos captured her exposed body, which later went viral online.

4. Viral Videos Left Her Deeply Traumatised
She lamented that people made memes and stickers from her exposed images, leaving her ashamed, unable to work freely, and fearful about her reputation and future.

5. She Reacted Out of Pain and Anger
“I poked her back. I admit I wouldn’t have done that if I weren’t provoked,” she confessed.

Despite the controversy, Emmanson maintains she is not a “troublesome person” and never expected the matter to spiral into a nationwide scandal.

Recently, Delta State Governor’s aide Ossai Ovie Success offered her a ₦500,000 monthly job and a free trip, a gesture that could help her rebuild her life.

Continue Reading

News

Stop Politicising EFCC Investigation To Blackmail President, APC Chieftain Tells Opposition Parties

Published

on

Niger Poised As Decentralized Electricity Model Under Tinubu's Act – Santuraki

A chieftain of the All Progressives Congress (APC) in Osun, Olatunbosun Oyintiloye, has cautioned members of opposition parties under the Economic and Financial Crimes Commission (EFCC) investigation to stop blackmailing President Bola Tinubu and focus on proving their innocence.

Oyintiloye, a member of the defunct APC Presidential Campaign Council, said this while speaking with newsmen on Sunday in Osogbo.

He said that the investigations being carried out by the anti-graft agency on some members of the opposition parties, based on petitions against them, were purely a constitutional matter and in line with international best practices.

Oyintiloye, a former lawmaker said that being a member of the opposition parties should not be seen as immunity against investigation into any alleged financial infractions whenever there were genuine reasons for it.

According to him, members of the ruling party are also being investigated by the EFCC whenever petitions alleging financial infractions are raised against them.

Oyintiloye said that the EFCC has a statutory mandate to investigate financial infractions involving public office holders across party lines without bias or favouritism.

The APC chieftain said that neither Tinubu nor the anti-graft agency would be swayed by unfounded allegations of witch-hunting but would rather continue to do what is right and just for the country.

“The EFCC has a mandate to investigate financial infractions against anyone, irrespective of political affiliations.

“Linking the President to the investigation of alleged financial infractions by opposition members in the name of politics is totally wrong.

“Whether you are a member of the ruling party or opposition, you are not immune to financial investigation.

“I want to caution members of the opposition parties to stop politicising what the EFCC is doing and prove their innocence, if any.

“President Tinubu is a man of honour and integrity, and he will not compromise his ideals in the name of politics. So, it is no longer business as usual,” he said.

According to him, there is no room for graft under the Tinubu administration

Continue Reading

News

BREAKING: Winner Emerges In Kano Bye-Election As APC, NNPP Lock Horns

Published

on

The All Progressives Congress (APC) has emerged winner of the Ghari/Tsanyawa supplementary election in Kano state

The returning officer, Professor Muhammad Waziri of Bayero University, declared Garba Ya’u Gwarmai of the APC winner with 31,472 votes

Waziri defeated the candidate of the New Nigeria Peoples Party (NNPP), Yusuf Ali Maigado, who polled 27,931 votes

2027: Pat Utomi Opens Up On working On A New Mega Party
The All Progressives Congress (APC) has secured victory in the Ghari/Tsanyawa supplementary election held in Kano state.

Announcing the results on Sunday morning, August 17, the returning officer (RO), Professor Muhammad Waziri from Bayero University, declared APC candidate Garba Gwarmai the winner with a total of 31,472 votes.

He defeated the candidate of the New Nigeria Peoples Party (NNPP), Yusuf Maigado, who polled 27,931 votes, according to The Punch.

The supplementary poll was conducted after the initial election in the constituency was declared inconclusive. With a margin of 3,541 votes, Gwarmai’s victory marks a key win for the APC as the party continues to reinforce its influence across the state.

Meanwhile, the NNPP won the Bagwai/Shanono state assembly by-election in Kano state.

Daily Trust and Vanguard noted this update.

Announcing the result at 12:36 a.m. on Sunday, August 17, the RO for the election, Prof. Hassan Adamu Shitu, declared the NNPP candidate, Ali Hassan Kiyawa, winner with 16,198 votes, defeating the APC candidate, Ahmad Muhammad Kadamu, who polled 5,347 votes.

Continue Reading

Trending