Nigeria’s biggest bank by Tier-1 Capital, Zenith Bank Plc, has said, it will resolve its single obligor limit (SOL) breaches by the end of this month, following the directive that banks under the Central Bank of Nigeria(CBN) regulatory forbearance halt all dividend payments and investments outside the country.
In a notice to investors and shareholders, on Wednesday, Zenith Bank assured of its readiness to satisfy all relevant conditions to exit the CBN’s regulatory forbearance by June 30, 2025, as it expressed confidence in meeting shareholders’ dividend expectations in the 2025 financial year.
The clarification comes on the back of heightened scrutiny of Nigerian banks’ capital health following the new CBN directive that suspends dividend payments and tightens oversight for banks with outstanding forbearance-related loans or breaches of the Single Obligor Limit (SOL).
Zenith Bank stated that its exposure under the Single Obligor Limit (SOL) forbearance relates solely to a single obligor, pointing out that this exposure will be brought within the applicable regulatory limit on or before June 30, 2025. The bank also confirmed that the forbearance granted on other credit facilities applies to only two of its customers, noting that it has made substantial provisions in respect of these facilities and taken appropriate and comprehensive steps to ensure full provisioning by June 30, 2025.
The bank further emphasised its strong financial footing, stating that, it has successfully raised and surpassed the new regulatory capital requirement of N500 Billion, and is therefore well positioned to continue delivering value to all its key stakeholders.
It said, the bank will continue to distinguish itself in the Nigerian financial services industry through superior service offering, unique customer experience and sound financial indices. The bank has remained a clear leader in the digital space with several firsts in the deployment of innovative products, solutions and an assortment of alternative channels that ensure convenience, speed and safety of transactions.
The bank’s track record of excellent performance has continued to earn the brand numerous awards including being recognised as the Number One Bank in Nigeria by Tier-1 Capital for the fifteenth consecutive year in the 2024 Top 1000 World Banks Ranking, published by The Banker Magazine.
