The Nigerian bank Zenith Bank Plc has announced its intention to exit the regulatory forbearance regime imposed by the Central Bank of Nigeria (CBN) by June 30, 2025. This decision comes in the context of strengthening banking supervision by the regulator, especially regarding credit concentration limits.
“In relation to forbearance granted on other credit facilities, the Bank confirms that it only applies to two (2) customers. We have made significant provisions for these facilities and have taken appropriate and comprehensive measures to ensure full provisioning by June 30, 2025. Once the work is completed, the Bank will no longer be subject to forbearance agreements in this regard. The Bank expects to have exited all forbearance agreements by the end of the first half of 2025,” states a declaration dated June 17, 2025, and filed with the Nigerian Stock Exchange.
The CBN recently issued a directive suspending dividend payments and foreign investments for banks that do not comply with certain prudential rules, including the single obligor limit. This measure aims to limit systemic risks by preventing institutions from excessively lending to a single borrower or related economic group.
In a note to its shareholders, the largest Nigerian bank in terms of equity expressed confidence in its ability to meet CBN requirements and resume dividend payments for the 2025 financial year. Zenith Bank also indicated that it has already raised over 500 billion nairas, surpassing the new minimum capital requirement recently set by the regulator.
According to the bank, this imminent exit from the forbearance regime demonstrates its commitment to strengthening regulatory compliance while maintaining a strong financial position. It could also send a positive signal to investors about the resilience of the Nigerian banking system, as the CBN intensifies its efforts to ensure sector stability and strength.
To date, no Nigerian bank has officially announced its exit from this regulatory forbearance regime, as the CBN directive is relatively recent. Zenith Bank could thus become one of the first institutions to restore full compliance if it indeed achieves its objectives by June 30.
