Efforts Intensify for Dividend Resumption at Access Holdings
Access Holdings, Nigeria’s premier financial institution, is actively working to fulfill regulatory requirements needed to resume dividend payments. This move follows the suspension of cash distributions to shareholders for the 2025 fiscal year, as announced by the company’s chairman during a recent annual general meeting in Lagos.
Record Profitability Meets Regulatory Roadblocks
Despite achieving a record net profit of N743 billion for 2025, the company did not declare dividends, a decision attributed to regulatory limitations rather than financial performance. Mr. Aigboje Aig Imokhufede, Chairman of the Board, emphasized the disparity between profitability and the ability to distribute dividends, stating that Access Holdings anticipates revenues exceeding N5 trillion and total assets surpassing N50 trillion in 2025—both historic benchmarks for the group.
Clarifying Regulatory Compliance Issues
Mr. Aig-Imoukhuede clarified that the restrictions are not due to recent banking regulations, but rather to compliance mandates enforced by the Central Bank of Nigeria (CBN). He noted that since joining Access Holdings’ board in 2024, there have been no new central bank directives affecting dividend distribution.
Crisis-Driven Measures Continuing to Impact Banks
In June of the previous year, the CBN ordered a suspension of banking transactions, impacting major financial institutions, including Access Bank, Zenith, and First Bank. This suspension stemmed from the regulatory forbearance introduced during the COVID-19 lockdown, which is still in effect as banks strive for compliance with capital adequacy ratios and provisioning standards.
Understanding the Context of Regulatory Restrictions
The CBN has indicated that the suspension will be in place until the impacted banks fully complete their regulatory grace period and prove their compliance with the necessary financial standards. Mr. Aig Imokhude mentioned that the CBN’s actions aim to ensure that banks work towards nearly 100% compliance in their financial practices.
Investment Compliance Challenges Ahead
Access Holdings is currently grappling with one additional compliance hurdle regarding investment limits in foreign bank subsidiaries, set at 10% of shareholder funds. Mr. Aig-Imoukhuede stressed that until the company fully adheres to this regulatory requirement, dividend distributions will remain on hold. He further noted that while establishing offshore subsidiaries is permissible under the law, the CBN has advised against circumventing these investment limits.
Navigating Future Prospects for Dividends
While the group’s non-banking subsidiaries are generating adequate profits to support dividend payments, the CBN treats the holding company and its banking subsidiaries as a singular entity regarding dividend eligibility. If Access Bank is unable to distribute dividends, the holding company will face similar restrictions. The group is collaborating with regulatory authorities in Nigeria and other regions to address and resolve outstanding compliance issues, with hopes of achieving compliance by year-end.
