Following the Central Bank of Nigeria’s (CBN) move to halt dividend payments, bonuses and new foreign investments for banks under regulatory forbearance, Zenith Bank and other affected banks, have put the necessary machinery in motion to exit the forbearance regime and strengthen their capital positions.

The regulatory directive which aims to bolster capital adequacy ratios and reinforce financial stability, sent shock waves through the banking industry and the stock market early in the week. This led to serious decline in the share price of many of the banks, resulting in bearish moments in the Nigerian Exchange (NGX), with the All-Share Index and Market capitalization taking a nosedive as investors dumped bank stocks.

However, in a press statement in a Lagos, Zenith Bank calmed the nerves of investors by detailing the steps it is taking to exit the forbearance. The bank also assured that it would maintain dividend payouts in the 2025 reporting year. According to the bank, its exposure under the CBN’s forbearance regime was limited to just one obligor under the Single Obligor Limit (SOL) and two additional customers with non-performing loans. It assured that full provisioning for these exposures will be completed by June 30, 2025, aligning with the CBN’s forbearance exit timeline.

The assurance by Zenith Bank and other banks that everything was under control with regard to the issue of forbearance made banking stocks to rebound in mid-week trading, with most of the stocks recovering virtually all that they lost on Monday and Tuesday.