Not all growth comes with gains, especially when it’s forced. The Central Bank of Nigeria’s new directive has put the brakes on banks’ dividend payouts, offshore investments, and bonuses, targeting lenders leaning on regulatory forbearance. But while aimed at sectoral stability, Premium Times reports this decision has caused waves on the Nigerian Stock Exchange, stripping over ₦100 billion in market capitalisation almost overnight.
Banks are under pressure. The CBN’s move to halt dividends for forbearance-dependent banks has sparked sharp market reactions and exposed capital challenges across Nigeria’s financial sector.
- CBN suspended dividends, bonuses, and offshore expansion for banks under regulatory forbearance
- The NGX Banking Index dropped 3.98% in response, with banking stocks driving a ₦108 billion market loss
- Major banks affected include Access Holdings, UBA, First HoldCo, FCMB, and Zenith
- Dividend restrictions may last till 2028 for some lenders, dampening investor expectations
- Analysts question the public handling, citing risks to investor sentiment and capital-raising strategies
What was meant to strengthen bank stability has left shareholders anxious and stocks slipping, and many top Nigerian banks may now face a long stretch without dividend returns.
