Nigeria’s United Bank for Africa (UBA), Access Holdings and First HoldCo are facing renewed uncertainty over dividend payments in 2026, as regulatory restrictions continue to delay returns to shareholders despite their profitability.
According to a report by BusinessDay published on October 24, the three banking groups have yet to secure confirmed clearance to resume dividend payments.
Their ability to pay will depend on meeting the Central Bank of Nigeria’s regulatory requirements and maintaining adequate capital to absorb potential loan losses.
The restrictions followed the CBN’s 2025 directive requiring banks with unresolved loan-forbearance exposures to suspend dividends until they met specified prudential conditions.
The measures were intended to ensure that lenders properly recognised troubled loans and maintained sufficient financial buffers.
UBA recorded a significant decline in profitability in 2025, with profit before tax falling 47.3 percent to ₦423.4 billion. The bank’s performance was affected by substantial loan-loss provisions and losses on derivatives.
Its total dividend for the year fell to 25 kobo per share, compared with ₦5 per share in 2024.
Management has indicated that it expects to resume dividend payments in 2026. However, the timing remains uncertain as investors await confirmation that the bank has satisfied the regulator’s requirements.
Access Holdings, meanwhile, reported a stronger financial performance, with profit before tax rising 16.2 percent to ₦1.01 trillion in 2025.
Despite the growth, the group did not pay a dividend for the year because of outstanding regulatory requirements.
The company has said a constraint affecting its interim dividend was resolved through an approved private placement.
However, its full-year dividend position remains subject to the relevant regulatory conditions and approvals.
First HoldCo has also signalled its intention to restore shareholder payouts. The group’s profit before tax fell 70.6 percent to ₦234.3 billion in 2025, amid significant impairment charges.
It subsequently approved a dividend policy targeting the distribution of at least 60 percent of annual profit, subject to regulatory approval.
Its stronger first-half 2026 performance has improved the outlook for potential distributions, although the policy does not guarantee an immediate payment.
The final amount will depend on full-year earnings, available distributable reserves and regulatory clearance.
For investors, the situation highlights the difference between a bank’s ability to generate profits and its ability to distribute those earnings.
Even when financial results improve, regulatory requirements and the need to protect capital can delay shareholder returns.
The next financial disclosures from the three groups will therefore be important in assessing their earnings recovery, asset quality and capacity to resume dividends.
Until the CBN confirms that the outstanding requirements have been met, shareholders will have to wait for greater clarity on when regular payouts can resume.
Source: BusinessDay, October 24, 2026; Access Holdings’ FY2025 dividend clarification.
