Six major Nigerian banks paid shareholders a combined N1.27 trillion in dividends for the 2025 financial year, while five other profitable lenders were prevented from distributing dividends after failing to meet regulatory requirements set by the Central Bank of Nigeria (CBN).
The development highlights the growing importance of capital strength and regulatory compliance in Nigeria’s banking sector as lenders continue to adjust to stricter financial requirements and the ongoing recapitalisation exercise.
GTCO, Zenith Bank, Stanbic IBTC, Ecobank Transnational Incorporated, Wema Bank and FCMB were among the banks that paid dividends to shareholders. GTCO declared N429.83 billion, while Zenith Bank paid N410.70 billion, making the two lenders the largest contributors to the total payout.
Stanbic IBTC distributed N63.61 billion, while FCMB paid about N14.97 billion. Ecobank Transnational Incorporated also declared a dividend of $40 million.
The figures show that the largest banks continued to dominate dividend payments, with GTCO and Zenith alone accounting for the majority of the total distribution.
However, profitability did not automatically translate into dividend payments for every bank.
Financial Vanguard’s review of the audited results of 11 major listed Nigerian banks showed that the institutions recorded a combined profit before tax of about N6.4 trillion in 2025, compared with N6.7 trillion in 2024. This represents a decline of roughly 3.8 per cent.
Despite the decline in overall profit, the banks recorded stronger gross earnings. Combined gross earnings rose to N26.4 trillion in 2025 from N23.2 trillion in 2024.
Tier-1 banks generated N18.2 trillion in gross earnings, compared with N16.9 trillion in 2024, while Tier-2 banks increased their combined gross earnings to N9.5 trillion from N7.6 trillion.
Access Holdings recorded gross earnings of N5.5 trillion, compared with N4.9 trillion the previous year. Zenith Bank followed with N4.1 trillion, up from N3.8 trillion, while GTCO’s gross revenue increased slightly to N2.15 trillion from N2.11 trillion.
First HoldCo also recorded growth, with gross earnings rising to N3.4 trillion from N3.2 trillion, while UBA’s figure declined slightly to N2.97 trillion from N3.1 trillion.
Analysts said the decision by some banks to retain profits was not necessarily a sign of financial weakness. Instead, it reflected the need for lenders to preserve capital, strengthen their balance sheets and meet regulatory requirements.
Fiona Ahimie, President of the Chartered Institute of Stockbrokers, said the difference in dividend payments was driven by factors including capital adequacy, regulatory compliance, earnings quality and individual banks’ strategic priorities.
According to her, banks that maintained strong capital positions and met regulatory requirements were better placed to distribute profits while still retaining enough resources to support future growth.
For banks that did not pay dividends, retaining earnings could provide additional capital for lending, technology investments and business expansion.
The decision, however, could affect investors who depend heavily on dividends as a source of income. Such investors may increasingly favour banks with strong capital positions and a consistent history of shareholder payouts.
David Adonri of Highcap Securities said the CBN’s intervention was aimed at protecting depositors after reviewing the financial positions of affected banks.
He noted that some lenders faced additional pressure from provisions for doubtful loans and other financial obligations. In certain cases, banks also needed to retain funds to meet foreign debt commitments.
Investment banker and chartered stockbroker Tajudeen Olayinka described the situation as a regulatory response designed to strengthen discipline within the banking industry.
He said some banks had been affected by large write-offs and provisions arising from previous regulatory forbearance, making it difficult for the CBN to approve dividend payments.
Analysts also pointed to loan defaults and other exposures that required banks to make substantial provisions before they could safely distribute profits.
The CBN’s position reflects a broader effort to ensure that Nigerian banks maintain sufficient capital to absorb potential losses and continue protecting depositors.
For shareholders, the immediate impact is reduced dividend income from the affected institutions. However, financial experts argue that retaining profits could produce longer-term benefits if the funds are used to strengthen banks and expand their ability to generate sustainable earnings.
The banking sector is also undergoing a major transformation as Nigerian lenders work to meet higher capital requirements. Stronger capital buffers are expected to improve the ability of banks to withstand financial shocks and support economic activity.
Analysts remain optimistic about the long-term outlook for the sector, particularly as banks continue to strengthen their balance sheets and complete recapitalisation requirements.
The latest dividend decisions therefore underline an important reality in Nigeria’s financial system: strong profits alone are no longer enough to guarantee shareholder payouts. Banks must also demonstrate sufficient capital, sound asset quality and compliance with the CBN’s prudential rules.
For investors across Africa watching Nigeria’s financial sector, the development could serve as another indication of how regulators are placing greater emphasis on banking stability and long-term resilience.
