Nigeria’s Biggest Banks Pay ₦1.27tn in Dividends as CBN Tightens Rules

Six of Nigeria’s largest listed banks paid shareholders a combined ₦1.27 trillion in dividends for 2025, while five profitable lenders received no approval to distribute profits.

GTCO, Zenith Bank, Stanbic IBTC, Ecobank Transnational Incorporated, Wema Bank and FCMB qualified under the Central Bank of Nigeria’s dividend rules. GTCO paid ₦429.83 billion, Zenith Bank ₦410.70 billion, Stanbic IBTC ₦63.61 billion and FCMB ₦14.97 billion. Ecobank paid $40 million. The two Tier-1 banks accounted for 81.9 per cent of the total payout.

The five banks that withheld dividends faced regulatory restrictions linked to capital retention, non-performing loans, provisioning and other CBN prudential requirements. Their profits therefore remained within the businesses to strengthen their balance sheets.

Audited results showed that 11 major listed banks recorded combined profit before tax of ₦6.4 trillion in 2025, down 3.8 per cent from ₦6.7 trillion in 2024. However, gross earnings increased from ₦23.2 trillion to ₦26.4 trillion.

Fiona Ahimie, President of the Chartered Institute of Stockbrokers, said: “The divergence in dividend payments among Nigerian banks this year was primarily driven by differences in capital strength, regulatory compliance, earnings quality and strategic priorities, rather than profitability alone.”

David Adonri of Highcap Securities added: “Several banks did not pay dividends for the financial year ended December 31, 2025, because after reviewing their financial accounts, CBN was not convinced that they were strong enough to pay dividends.”

The CBN dividend rules have therefore placed greater emphasis on financial resilience than immediate shareholder returns. Analysts say retained earnings could strengthen lending capacity and support future growth, while regulators argue that tighter oversight protects depositors and investors.

As banks complete their recapitalisation programmes, dividend payments could become more stable. For now, the CBN dividend rules remain a major factor shaping shareholder returns across Nigeria’s banking sector.

Do you think tighter dividend controls will ultimately create stronger Nigerian banks?