Zenith, Access, Fidelity, FCMB Stocks Sell off After Central Bank Halts Dividends

There has been a sell-off in banks’ shares as investors digested a central bank directive for certain unspecified lenders to bolster cash buffers by halting dividend payments.

Access Holdings Plc lost -8.28% as of June 16,2025 in Lagos. United Bank for Africa (UBA) Plc shed -5.67%; Zenith Bank, -6.37%; FirstHoldCo Plc, -6.08%; Fidelity Bank,-4.94%; Sterling Bank, -4.84%; WEMA Bank, -0.72, and First City Monument Bank (FCMB) Plc, -6.57%.

The index for the country’s 10 biggest and most liquid bank stocks was down 4% at 2:53 p.m. in Lagos on Monday, paring earlier losses of more than 7% and taking the gauge to its lowest level since June 2. The broader Nigerian stock index was down 0.2% on the session.

“All banks that want to continue to pay dividends must make full provisions for their non-performing loans, which will invariably impact their profitability,” said Adetilewa Adebajo, chief executive officer at Lagos-based CFG Advisory.

The Central Bank of Nigeria said in a June 13 statement it is barring banks that it had granted credit forbearance from paying dividends or director bonuses, as well as making foreign investments. During the Covid-19 pandemic, it allowed banks to manage potential credit risks without classifying affected loans as non-performing.