HomeBusinessOnly six Nigerian banks pay N1.27 trillion dividends

Only six Nigerian banks pay N1.27 trillion dividends

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KEY POINTS


  • Six banks, GTCO, Zenith, Stanbic IBTC, Ecobank, Wema and FCMB, paid a combined N1.27 trillion in 2025 dividends.
  • The CBN barred five profitable lenders that missed prudential rules amid rising bad loans and capital-retention needs.
  • Combined pretax profit fell 3.8 percent to N6.4 trillion, though gross earnings rose to N26.4 trillion.

Only six of Nigeria’s biggest listed banks rewarded shareholders for 2025, paying a combined N1.27 trillion in dividends, while the Central Bank of Nigeria barred five other profitable lenders that fell short of its prudential requirements.

According to Financial Vanguard, GTCO, Zenith Bank, Stanbic IBTC, Ecobank Transnational Incorporated, Wema Bank and FCMB passed the apex bank’s eligibility test and declared payouts. However, five profitable banks withheld dividends because rising non-performing loans and the CBN’s capital-retention rules limited what they could distribute.

Who paid and who held back

GTCO led the field with N429.83 billion at N12.76 per share, and Zenith Bank followed with N410.70 billion at N10.00 per share. Furthermore, Stanbic IBTC paid N63.61 billion, Ecobank paid about $40 million, and FCMB paid N14.97 billion. Together, the Tier-1 banks GTCO and Zenith accounted for 81.9 percent of the total payout.

Meanwhile, profits across the sector softened. The 11 large listed banks posted combined pretax profit of N6.4 trillion in 2025, down 3.8 percent from N6.7 trillion a year earlier. Within that total, Tier-1 lenders earned N4.15 trillion against N5.06 trillion, while Tier-2 lenders improved to N2.26 trillion from N1.6 trillion. Still, gross earnings climbed to N26.4 trillion from N23.2 trillion, as Access Holdings led with N5.5 trillion and Zenith reported N4.1 trillion.

Why the CBN held back payouts

Analysts traced the split to regulation rather than weak earnings. According to Fiona Ahimie, president of the Chartered Institute of Stockbrokers, the affected banks chose to preserve capital because recapitalisation, heavier risk provisioning and prudential limits took priority. Therefore, she framed the decision as a conservative capital-management strategy that should strengthen balance sheets over time.

Other experts pointed directly at the regulator. David Adonri of Highcap Securities said the CBN stopped the payouts after forbearance on doubtful loans lapsed and left some banks short of retained profit, and he noted that some lenders had fully provided for a large Nestoil loan default. Similarly, Tajudeen Olayinka called it a regulatory pushback, while Kasimu Kurfi said the bank blocked one Tier-1 lender whose foreign-subsidiary exposure exceeded the 10 percent limit.

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