Nigerian Banks Pay Out N135bn Dividends Amid Economic Challenges
Four of Nigeria’s leading financial institutions—United Bank for Africa, Zenith Bank, Guaranty Trust Holding Company, and Stanbic IBTC Holdings—have rewarded their shareholders with interim dividends amounting to about N135.49bn for the half-year ended June 30, 2025.
The dividend payment, detailed in their financial reports filed with the Nigerian Exchange Limited, provided relief to investors who had expressed concerns that lenders might hold back on payouts amid regulatory pressures and macroeconomic uncertainties.
Stanbic IBTC Holdings emerged as the highest interim dividend payer, declaring N2.50 per ordinary share of 50 kobo each. This translates to a total interim dividend of N39.75bn, subject to appropriate withholding tax and regulatory approvals.
The bank stated that shareholders whose names appear in its register of members as of Monday, October 6, 2025, would benefit from the payout. Analysts noted that Stanbic’s decision underlined its strong earnings capacity and commitment to shareholder value despite a challenging operating environment.
Zenith Bank, the country’s largest lender by market capitalisation, followed closely, approving an interim dividend of N1.25 per share across its 41,069,830,001 issued shares. This amounts to about N51.34bn.
In its interim report, Zenith explained that the dividend, subject to ratification by shareholders, would be paid from its retained earnings. The bank emphasised that the move reflected its robust financial position and resilience in navigating Nigeria’s evolving banking landscape.
Guaranty Trust Holding Company also announced a significant payout, rewarding shareholders with N1 per share, amounting to N34.14bn for the half-year period. GTCO’s decision reassured investors who had been worried that regulatory tightening might impact dividend payments across the sector.
Meanwhile, the board of United Bank for Africa proposed an interim dividend of N0.25 per share, translating into a dividend yield of 1.4 per cent and a payout ratio of 7.83 per cent. Though comparatively modest, UBA’s payout reinforced its track record of balancing profitability, regional expansion, and shareholder reward.
Collectively, these four institutions provided their investors with much-needed returns, boosting confidence in the financial sector. While these banks brightened investor sentiment, some financial institutions have struggled to meet regulatory deadlines for filing their half-year reports.
Access Holdings recently secured approval from the NGX to extend the publication of its half-year report from September 29 to October 22, 2025. The lender explained that the delay was to allow sufficient time to obtain clearance from the Central Bank of Nigeria.
Similarly, Fidelity Bank attributed its delay in releasing results to ongoing reviews of its audited financial statements. The bank assured investors that once the review process was completed and the CBN granted approval, the results would be published in line with NGX rules and other relevant regulations.
Other lenders, including First HoldCo, Sterling Financial Holding Company, Wema Bank, and FCMB Group, have already released their half-year results. However, none of them declared interim dividends, citing regulatory directives and capital management considerations.
The mixed pattern of dividend announcements across the banking sector follows a recent circular by the Central Bank of Nigeria. The apex bank ordered banks operating under regulatory forbearance to suspend dividend payments, defer executive bonuses, and halt offshore investments.
The directive, signed by the CBN’s Director of Banking Supervision, Olubukola Akinwunmi, was part of ongoing reforms to strengthen the resilience and stability of the Nigerian banking sector.
The CBN said it had reviewed the capital adequacy and provisioning levels of banks under regulatory forbearance—particularly those with significant credit exposures and breaches of single obligor limits—before issuing the directive.
Affected banks have since assured their shareholders that they are working to resolve exposures that necessitated the forbearance and would soon return to normal dividend payments. According to investment bank Renaissance Capital Africa, six Nigerian banks collectively hold about $3.52bn in forbearance loans.
However, optimism grew following the most recent Monetary Policy Committee meeting, where the CBN disclosed that the forbearance measures had been successfully wound down.
“The committee further noted the successful termination of forbearance measures and waivers on single obligors, which have helped to promote transparency, risk management, and long-term financial stability in the banking system,” the MPC said in its communique.
The MPC reassured investors and the public that the impact of the removal of forbearance would be temporary and would not compromise the soundness and stability of the banking system.
Analysts believe that the N135.49bn interim dividend payments by UBA, Zenith Bank, GTCO, and Stanbic IBTC will help restore investor confidence, particularly at a time when many shareholders had resigned themselves to reduced or suspended payouts.
The move is also seen as an indication of the resilience of Nigeria’s top-tier banks and their ability to navigate regulatory and macroeconomic headwinds while still rewarding investors.
With regulatory uncertainties gradually easing and forbearance measures lifted, industry stakeholders expect more banks to resume dividend payouts in the coming quarters, further strengthening investor confidence in the Nigerian banking sector.