Fidelity Bank, Access Bank, and First Bank will not pay dividends for the 2025 financial year. The Central Bank of Nigeria (CBN) required these lenders to make significant provisions against potential losses following a recent stress-testing exercise.
The dividend suspensions have reduced expected returns for investors and contributed to a decline in banking stock prices. This regulatory action highlights a growing divide between lenders with strong balance sheets and those facing heavy provisioning requirements.
Bismarck Rewane, CEO of Financial Derivatives Company, stated the exercise created two distinct categories of banks. Investors are now prioritizing dividend certainty and balance-sheet strength when evaluating financial institutions.