Table of Contents
Key Points
- Zenith Bank, led by Adaora Umeoji, plans to exit CBN forbearance by June 30, 2025, restoring dividend and bonus payments.
- The bank surpassed the N500 billion ($323.6 million) regulatory capital threshold, reinforcing compliance with Nigeria’s Single Obligor Limit rules.
- Zenith reported a 20.7% profit surge in Q1 2025 amid strong earnings and expanded internationally with a new Paris branch.
Zenith Bank Plc, a Lagos-based financial services group led by Nigerian banker Adaora Umeoji, has announced plans to fully exit its regulatory forbearance arrangement with the Central Bank of Nigeria (CBN) by June 30, 2025. The lender disclosed this in a statement filed on the Nigerian Exchange (NGX), reaffirming its commitment to meeting all supervisory requirements.
Under the current CBN directive, affected banks—including Zenith—are restricted from paying dividends, bonuses, or investing in foreign subsidiaries due to non-compliance with the Single Obligor Limit (SOL) and other credit facility regulations. Zenith Bank, confirmed it has already surpassed the new regulatory capital threshold of N500 billion ($323.6 million).
“We are confident that our exposure under the SOL will be brought within the applicable regulatory limits on or before June 30, 2025,” the bank said in the statement signed by Company Secretary Michael Otu. The forbearance on other credit facilities affects only two customers, with substantial provisions made. The bank expects to fully provision these by the end of the first half of 2025, at which point it will exit all forbearance arrangements.
CBN maintains dividend freeze, focuses on capital adequacy
The Central Bank of Nigeria reiterated its regulatory stance on Tuesday, emphasizing that the forbearance directive affects only a select number of banks. According to the CBN’s Acting Director of Corporate Communications, Sidi Ali, the restrictions aim to retain internally generated funds and bolster capital adequacy.
“The measures announced apply only to a limited number of banks and include temporary restrictions on capital distributions such as dividends and bonuses,” the statement read. The CBN confirmed close supervisory engagement with all affected lenders.
Zenith Bank’s growth and international expansion
Founded in 1990 by billionaire Jim Ovia, who holds a 16.2 percent stake, Zenith Bank has maintained its status as a powerhouse in Nigeria’s banking sector. The bank expanded internationally in 2024 by opening a branch in Paris, targeting Francophone Africa and European markets.
Since assuming the CEO role in June 2024, Adaora Umeoji, holding 91.9 million shares, has driven strong growth since her appointment. Zenith reported a 20.7 percent rise in first-quarter profit for 2025, climbing from N258.34 billion ($161 million) in 2024 to N311.83 billion ($194.4 million) this year.
This surge was fueled by robust gross earnings and increased interest income. With a total share capital and premium of N614.65 billion ($397.8 million), Zenith stands out as one of Nigeria’s best-capitalized lenders, positioning itself for a strong comeback post-forbearance.
