Only six of Nigeria’s major listed banks paid a combined N1.27 trillion in dividends to shareholders for the 2025 financial year, while five other profitable banks were unable to make dividend payments after failing to meet the Central Bank of Nigeria’s (CBN) prudential requirements.
The banks that paid dividends were GTCO, Zenith Bank, Stanbic IBTC, Ecobank Transnational Incorporated, Wema Bank and FCMB.
GTCO paid about N429.83 billion, while Zenith Bank paid N410.70 billion. Stanbic IBTC distributed N63.61 billion, while Ecobank Transnational Incorporated paid about $40 million. FCMB also paid approximately N14.97 billion to shareholders.
The two Tier-1 banks, GTCO and Zenith Bank, accounted for about 81.9 per cent of the total dividend payments.
CBN rules limit dividend payments
Analysts said profitability alone was not enough to determine whether banks could pay dividends. Capital adequacy, regulatory compliance, loan losses, provisioning requirements and the need to strengthen balance sheets also played major roles.
Fiona Ahimie, President of the Chartered Institute of Stockbrokers, said some banks chose to retain their profits because strengthening their capital positions had become a priority amid the banking sector’s recapitalisation programme.
She said the decision could help banks improve their resilience, expand lending, invest in digital services and support future growth.
David Adonri of Highcap Securities, however, said the CBN stopped some banks from paying dividends because their financial positions were not considered strong enough to support distributions to shareholders.
According to him, the expiration of regulatory forbearance on doubtful loans meant some banks had to make additional provisions, reducing the profits available for dividend payments.
He added that some banks also needed to preserve funds to meet foreign debt obligations.
Investment banker and Chartered Stockbroker Tajudeen Olayinka described the situation as a regulatory intervention aimed at protecting the banking sector.
He said some affected banks had proposed dividend payments but were prevented from proceeding because of large provisions and write-offs arising from regulatory requirements.
Banks record N6.4tn combined profit
Despite the restrictions on dividend payments, Nigeria’s 11 major listed banks recorded a combined N6.4 trillion profit before tax in 2025, compared with N6.7 trillion in 2024, representing a 3.8 per cent decline.
Tier-1 banks recorded N4.15 trillion in profit before tax, down from N5.06 trillion in 2024, while Tier-2 banks increased their combined profit before tax to N2.26 trillion from N1.60 trillion.
However, combined gross earnings rose significantly to N26.4 trillion in 2025, compared with N23.2 trillion in 2024.
Access Holdings recorded the highest gross earnings among the banks, rising to N5.5 trillion from N4.9 trillion. Zenith Bank followed with N4.1 trillion, up from N3.8 trillion, while GTCO’s gross revenue increased slightly to N2.15 trillion from N2.11 trillion.
Outlook remains positive
Analysts believe the outlook for Nigeria’s banking sector remains positive as banks strengthen their capital bases and comply with new regulatory requirements.
Ahimie said dividend payments could become more stable and predictable as banks complete their recapitalisation and strengthen their financial positions.
Meanwhile, Mallam Kasimu Kurfi said some banks were prevented from paying dividends because they had not fully addressed impairment issues.
He also noted that one Tier-1 bank had exposure to a foreign subsidiary above the CBN’s prescribed limit, requiring the bank either to increase shareholders’ funds or reduce its holdings before it could resume dividend payments.
The regulatory restrictions are expected to encourage Nigerian banks to maintain stronger capital positions and improve risk management, while shareholders may increasingly scrutinise banks’ financial performance and dividend policies.
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