Zenith Bank to exit CBN’s forbearance package June 30

Zenith Bank Plc on Wednesday announced that it plan to exit from the Central Bank of Nigeria’s (CBN) regulatory forbearance regime by June 30, 2025, signalling improved asset quality and stronger financial footing.

The bank is also optimistic about dividend payments to shareholders this year.
The bank in a statement by its Company Secretary, Michael Otu, also pointed out that it has successfully raised and surpassed the new regulatory capital requirement of N500 billion.

It explained: “We refer to the recent circular issued by the CBN concerning regulatory forbearance in respect of Single Obligor Limit (SOL) and other credit facilities. Zenith Bank Plc wishes to provide the following clarifications in compliance with the Rulebook of the Exchange, 2015 (Issuers’ Rules).

“The bank has successfully raised and surpassed the new regulatory capital requirement of N500 billion.

“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 June 30, 2025.
“With respect to the forbearance granted on other credit facilities, the bank confirms that this applies to only two customers. We have made substantial provisions in respect of these facilities and have taken appropriate and comprehensive steps to ensure full provisioning by June 30, 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.
“Accordingly, we remain confident that the bank will satisfy all relevant conditions to enable it pay dividend to shareholders in the current year.”

In a circular dated June 13, 2025, and signed by Director of Banking Supervision, Dr. Olubukola Akinwunmi, the CBN had instructed all banks currently under regulatory forbearance to suspend the payment of dividends to shareholders, bonuses to directors and senior executives, and investments in offshore subsidiaries or new foreign ventures.
The move, according to the apex bank, was part of a broader strategy to ensure that banks operating under forbearance supervision strengthened their financial resilience and fully complied with capital adequacy and loan provisioning standards.
CBN had emphasised that the restrictions were temporary and will be lifted once key conditions were met, a full exit from regulatory forbearance, and independent verification of capital and provisioning levels as being within acceptable regulatory thresholds.
The CBN directives were designed to ensure full provisioning for high-risk exposures and improve cash-based profitability metrics.