Access Holdings says dividend resumption hinges on CBN compliance, not profit
By Aboki Forex —
Access Holdings, Nigeria’s biggest lender, is working to meet regulatory conditions for resuming dividend payments. The bank paused cash rewards to shareholders for the 2025 financial year. Its chairman, Aigboje Aig-Imoukhuede, said this on Wednesday at the annual general meeting in Lagos.
He stressed that the inability to declare a dividend for 2025 was not a profitability issue. Access Holdings posted a record net profit of N743 billion for the year. The bank also recorded earnings of more than N5 trillion and total assets exceeding N50 trillion. Both are record figures for the group.
“I did not say inability to pay, I said to share,” Aig-Imoukhuede told shareholders. “Without a doubt, those results do not speak to an institution that cannot pay a dividend. Of course, we can pay a dividend.”
The limitation came from regulatory compliance requirements imposed by the Central Bank of Nigeria (CBN). He clarified that no new banking regulations were issued on dividends since he joined the board in 2024. “Between the time that I joined the board of Access Holdings in 2024 and now, there has been no new central bank regulation that pertains to the issue of dividends,” he said.
Last June, the CBN suspended dividend payments for banks still benefiting from regulatory forbearance introduced during the COVID-19 lockdowns. Access Bank, Zenith Bank, and First Bank were among the affected lenders. The regulator said the suspension will stand until affected banks fully exit the forbearance and their capital adequacy and provisioning levels are independently verified.
Aig-Imoukhuede said Access Bank still has one outstanding compliance issue. The rule requires banks to limit investments in foreign banking subsidiaries to 10% of shareholders’ funds. “CBN says come into compliance with this requirement and ensure that you take this stipulation very seriously. Until you’re in compliance, you cannot pay dividends,” he explained.
The chairman clarified that Nigerian banks are not prohibited from setting up foreign subsidiaries. The bank has not been told to divest any offshore operations. While Access Holdings’ non-banking subsidiaries generate enough profits to support dividend payments, the CBN views the holding company and its banking subsidiary as a single entity for dividend purposes. If Access Bank cannot pay a dividend, the CBN will extend the restriction to the holding company.
The group is working with regulators in Nigeria and other jurisdictions to resolve the issue. Aig-Imoukhuede expects compliance to be achieved within the year.