Shareholders Express Concern Over CBN’s Dividend Suspension
…Demand Swift Exit From Forbearance
Shareholders under the aegis of the New Dimensional Shareholders Association have expressed deep concern over the Central Bank of Nigeria’s (CBN) recent directive suspending dividend payments and other capital outflows for banks operating under regulatory forbearance frameworks.
The association described the measure as potentially damaging to shareholder returns in the short term but acknowledged its long-term benefits for financial system stability.
The CBN had, in a circular dated June 13, 2025, directed banks still under post-COVID-19 forbearance arrangements to halt dividends, bonuses, and new foreign investments.
The move, according to the apex bank, is part of efforts to strengthen capital adequacy and ensure full resolution of impaired credit exposures granted under temporary regulatory leniency during the pandemic-era economic disruptions.
Reacting to the development in an exclusive interview with THE WHISTLER, the President of the New Dimensional Shareholders Association, Mr. Patrick Ajudua, said the directive was met with worry among retail investors. He noted that the restriction could limit expected dividend income—both interim and final—and depress market sentiment around affected banking stocks.
“We were very concerned when we saw the CBN circular,” Ajudua stated. “This no doubt will hinder us from receiving our dividends from the banks and could negatively impact the capital appreciation of their share prices.
At a time when Nigerians are grappling with economic hardship and declining purchasing power, the effect on investors could be catastrophic.”
Despite these immediate setbacks, the association emphasized that it sees the merit in the CBN’s decision from a long-term perspective.
According to Ajudua, the policy, though painful, is a necessary intervention that could ultimately build a more resilient and transparent banking system.
“As investors in the capital market, we believe in the long-term value of this temporary suspension,” he said. “It will help strengthen the capital base of affected banks and attract more sustainable and genuine investments.”
The association noted that only a limited number of banks are impacted by the suspension, and urged both the CBN and the concerned institutions to act swiftly in implementing corrective measures that would enable them to exit the forbearance regime.
They called for a clear and transparent roadmap to restore regular dividend payments in a timely manner.
“We take solace in the fact that this measure will affect only a few banks,” Ajudua added. “But we urge the CBN and affected banks to develop detailed plans to exit the forbearance status as soon as possible. This is in the interest of shareholders and the wider capital market. The sooner dividend payments resume, the better for investor confidence and market stability.”
The shareholders reaffirmed their support for regulatory policies aimed at safeguarding the banking sector, but insisted that the CBN must continue to engage stakeholders transparently and proactively throughout the transition period.
Shareholders Express Concern Over CBN’s Dividend Suspension is first published on The Whistler Newspaper
