6 banks pay N1.27tn dividends for 2025, CBN blocks five others over prudential rules
Only six of Nigeria’s largest listed banks rewarded shareholders with a combined N1.27 trillion in dividends for the 2025 financial year. Five other profitable lenders were barred from making payouts after failing to meet the Central Bank of Nigeria’s (CBN) prudential requirements.
Financial findings showed that Guaranty Trust Holding Company (GTCO), Zenith Bank, Stanbic IBTC, Ecobank Transnational Incorporated, Wema Bank and First City Monument Bank (FCMB) passed the apex bank’s eligibility test and declared dividends. GTCO paid N429.83 billion (N12.76 per share), Zenith Bank N410.70 billion (N10.00 per share), Stanbic IBTC N63.61 billion (N4.00 per share), Ecobank $40 million, and FCMB N14.97 billion (35 kobo per share). The two Tier-1 banks alone accounted for 81.9 per cent of the total.
The remaining five banks posted profits yet withheld dividends. The CBN’s capital-retention policy, rising non-performing loans and other prudential guidelines constrained their ability to distribute cash. Across the 11 big listed banks, combined profit before tax fell 3.8 per cent to N6.4 trillion from N6.7 trillion in 2024. Gross earnings, however, rose to N26.4 trillion from N23.2 trillion.
Experts attributed the divergence to capital strength and regulatory compliance rather than profitability alone. Fiona Ahimie, President of the Chartered Institute of Stockbrokers, said some banks maintained adequate capital ratios and satisfied regulatory tests, while others prioritised balance-sheet resilience amid the sector’s recapitalisation and higher provisioning requirements. David Adonri of Highcap Securities noted that the CBN withheld approval where banks lacked sufficient retained profits after full provisioning for doubtful credits or needed cash for foreign debt obligations. Tajudeen Olayinka described the stance as deliberate regulatory push-back to impose prudence.
The immediate effect is a split in shareholder returns. Income-focused investors may favour banks with consistent payout records. For the banks that suspended dividends, short-term share-price pressure is possible, yet retained earnings deployed to strengthen capital could support longer-term value. For customers, the decision does not signal distress; it reflects a conservative capital strategy intended to improve resilience and lending capacity.
The CBN’s intervention prioritises depositor protection and balance-sheet strength over immediate shareholder distributions. As more banks complete recapitalisation and clean impairments, dividend payments are expected to become more stable. Until then, profitability alone is no longer a sufficient condition for payout approval.
