Zenith Bank Exits CBN’s Regulatory Forbearance June 30

Zenith Bank is set to complete its exit from the Central Bank of Nigeria’s regulatory forbearance arrangement by June 30, 2025.

The bank disclosed this in a statement filed with the Nigerian Exchange Limited, reassuring shareholders that it will meet the necessary conditions to pay dividends this year.

According to the bank’s management, Zenith Bank has successfully raised and surpassed the new regulatory capital requirement of N500 billion.

The bank’s exposure under the Single Obligor Limit (SOL) forbearance is limited to a single obligor, and it is confident that this exposure will be brought within the applicable regulatory limit by the end of June 2025.

Regarding other credit facilities under forbearance, Zenith Bank confirms that only two customers are affected. The bank has made substantial provisions for these facilities and is taking comprehensive steps to ensure full provisioning by June 30, 2025.

This development comes after the Central Bank of Nigeria directed banks under regulatory forbearance to suspend dividend payments to shareholders, defer bonuses to directors and senior executives, and halt investments in foreign subsidiaries.

The directive aims to strengthen banks’ capital buffers and ensure adequate provisioning against impaired loans.

The Central Bank’s move has sparked debate among analysts, with some arguing that it will enhance the banking sector’s stability, while others believe it may negatively impact investor sentiment and lead to decreased share prices.

Despite this, Zenith Bank’s management is confident that the bank will emerge stronger and more resilient following its exit from the forbearance arrangement.