Zenith Bank Set to Exit CBN Forbearance Deal by June 30
Zenith Bank has officially revealed its plan to exit all regulatory forbearance arrangements with the Central Bank of Nigeria (CBN) by June 30, 2025. The announcement was made in a statement filed with the Nigerian Exchange Limited on Wednesday.
The forbearance relates to the CBN’s recent directive that affected certain banks, restricting them from issuing dividends, bonuses, or investing in foreign subsidiaries due to exposure limits on loans and other credit facilities. These measures were introduced to strengthen capital adequacy and support internal fund retention.
Zenith Bank, in a statement signed by its Company Secretary, Michael Otu, confirmed that it has exceeded the new regulatory capital threshold of ₦500 billion. The bank stated that its forbearance case was tied to a single obligor and expressed confidence in resolving the issue within the CBN’s limit by the June deadline.
According to the statement, “The Bank’s exposure under the Single Obligor Limit (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 30 June 2025.”
The bank also disclosed that the second aspect of the forbearance, involving two other credit facilities, has already seen substantial provisioning. Zenith affirmed that it has taken necessary actions to ensure complete provisioning by the same deadline, ensuring the bank will be free from all CBN forbearance conditions by mid-2025.
“Upon completion, the Bank will no longer be under any forbearance arrangements. The Bank expects to have exited all CBN forbearance arrangements by the end of the first half of 2025,” the statement added.
In reassuring its investors, Zenith Bank stated that meeting these conditions will place it in a solid position to pay dividends within the current financial year.
Meanwhile, the CBN, through a separate statement signed by its acting Director of Corporate Communications, Sidi Ali, confirmed that only a few banks are currently affected by these temporary restrictions. It also emphasized that the measures are part of ongoing efforts to strengthen the financial sector through closer supervision and increased capital retention.
“The measures announced apply only to a limited number of banks. All affected banks have been formally notified and remain under close supervisory engagement,” the CBN stated.
Zenith Bank’s proactive steps to meet the regulatory demands are seen as a strategic move to maintain investor confidence and ensure its long-term stability amid Nigeria’s evolving banking environment.
