Zenith Bank Targets Exit from CBN Forbearance Regime by End of June

Zenith Bank Plc has disclosed that it will exit the regulatory forbearance framework of the Central Bank of Nigeria (CBN) by June 30, 2025.

The update was contained in a corporate filing submitted to the Nigerian Exchange Limited on Wednesday. The development follows the apex bank’s recent directive restricting dividend payments, executive bonuses, and offshore investments by banks currently benefiting from regulatory concessions related to Single Obligor Limits (SOL) and certain credit exposures.

In the disclosure signed by the company secretary, Michael Otu, Zenith Bank confirmed that it had exceeded the CBN’s newly set capital threshold of ₦500 billion. The lender stated that its forbearance status is tied to a single obligor under the SOL framework, and assured stakeholders that this exposure would be normalized before the June 30 deadline.

“Regarding other credit-related forbearance, the bank clarified that only two customers are involved. We have made significant provisions and implemented necessary strategies to ensure full compliance with provisioning standards by the end of June 2025,” the statement read.

Zenith Bank emphasized that once this process is completed, it would no longer fall under any CBN forbearance classification and expects to achieve a full exit by the close of the first half of the year.

The bank also sought to reassure investors that it is on track to meet all necessary conditions to enable dividend payouts in 2025, despite the current regulatory restrictions.

Meanwhile, the Central Bank reaffirmed on Tuesday that the measures apply to a limited group of banks. In a statement signed by the acting Director of Corporate Communications, Sidi Ali, the regulator said the restrictions aim to enhance capital adequacy by encouraging retention of earnings.

“The directives issued cover only a few institutions and are temporary capital distribution limits—specifically, dividends and bonuses. All affected banks have been duly informed and remain under close supervisory oversight,” the CBN added.