Banking
Investors Reject CBN Directive on Dividend Payment by Banks, Threaten Lawsuit
By Dipo Olowookere
Shareholders in the nation’s capital market have condemned recent directive by the Central bank of Nigeria (CBN), to Deposit Money Banks (DMB), not to pay dividend on its shares until all its expenses have been completely written off, saying the decision is a disincentive to investors; promising to challenge this in court if necessary, Guardian Newspaper is reporting.
The shareholders, who argued that the market is information-driven, said with the little signs of recovery and capital appreciation witnessed recently, government at all levels must be cautious, and avoid any actions and decisions that could send wrong signals, and erode investors’ confidence in the market.
According to them, expectations are that the relatively low interest rates in the money market, and sell-off in the bond market will boost inflow into the stock market, as fund managers play earnings season for quick returns in high dividend paying stocks.
The shareholders however argued that the decision by the apex regulator on dividend payout would definitely erode the optimism and confidence on huge investment inflow into the equity market, which has trailed it since the beginning of the year.
Furthermore, they added that there are possibilities of some hasty sell-off reactions by investors especially in stocks that are affected by the dividend payment restrictions.
Specifically, the President, Proactive Shareholders Association of Nigeria, Taiwo Oderinde, in an interview with The Guardian, said: “CBN is only interested in protecting the banks’ depositors at the expense of the shareholders. Every bank has its own board that has the prerogative to decide to pay dividend.”
“It is not CBN’s responsibility to decide when or when not to pay dividend to their investors. It is an anti-investors policy and directive, and we will challenge it in court,” he said.
Also speaking, the Publicity Secretary of Independence Shareholder Association, Moses Igbrude, described the CBN directive to banks with huge non-performing loans not to pay dividend to shareholders as most unfortunate, noting that the decision would have negative effects on the market.
“Why would CBN wait until the loans go bad before issuing now, who are these borrowers, what has CBN done to those serials borrowers, who take loans from one bank to the other without paying? What sanctions or punishment have they imposed on them, why are they afraid of them?
“We, shareholders, are not happy about this directive, and it is going to affect us seriously in this harsh economic period. Though we are going to question and ask bank managements at the AGMs who are these people owing the banks, the regulator should address the issue of non-performing loan in all its form by sanctioning the borrowers, and the givers of the loans before punishing the shareholders.”
The President, Progressive Shareholders Association, Boniface Okezie, said the CBN has failed to do what is expected of it as an apex financial regulator abnitio.
“Where was the CBN when the banks’ non-performing loans hit the roofs? CBN should not pass the buck to the investing public, my advice to CBN is that they must reverse this policy; it is not going to help the Investors at all.
“They should allow the banks that have made a lot of recovery from their bad loans whose shareholders’ funds are strong to be allowed to go ahead to pay dividends to their shareholders. If any bank has weak capitals, it should not contemplate paying any dividend whatsoever, and those banks must be given marching orders to go after the defaulters to pay back their loans with the assistants of CBN.”
The Co-Founder, Nigeria Shareholders Solidarity Association (NSSA), Gbadebo Olatokumbo, described the decision as a bomb shell, saying it is contrary to investors’ expectations of huge dividend payout in the current financial year.
He pointed out that the managements and directors of any bank that fails to pay dividend to shareholders must be held accountable.
He added that any bank that failed the dividend-payment test, should not pay emoluments to their directors, while the management should lose their bonuses and welfares, and be responsible for the payment on any sanction from the apex bank forthwith.
“Really, it was a bomb-shell to the expectations of shareholders on returns on investments, but CBN has a job to do, and it must be done effectively.
“We will have to hold the managements and directors of our banks liable, if they were unable to pay dividend. The committee of bank that approved those unpaid loans should have questions to answer, while insider defaulters, who are the managements and directors, must be made to face the music.”
CBN had released an update on an earlier circular issued October 8, 2014, on, “Internal Capital Generation and Dividend Pay-out Ratio of Nigerian Banks.”
The major focus of the circular is on the capital reserves of the banks as well as the proportion of non-performing loans in a bid to forestall any threats to customer deposits in the system.
Source: The Guardian
By Modupe Gbadeyanka
About N2 billion is expected to be used to finance renewable energy products for customers by the end of 2026 in an effort to accelerate Nigeria’s clean energy transition.
To meet this goal, Sterling Bank is launching Sterling Solar Financing Hubs inside StarTimes retail outlets to embed on-the-spot solar financing at the point of purchase.
From the N2 billion earmarked for this initiative, N600 million has already been used up.
Under this programme, customers can now walk into participating outlets, select their preferred solar solution, receive financial guidance from dedicated Sterling Solar Financing Advisors, and begin the financing process immediately, subject to the bank’s credit assessment.
The first phase of the rollout commenced this July with five Solar Financing Hubs across Lagos, located in Lekki, Ikeja, Festac, Surulere, and Victoria Island.
The network will expand rapidly to 46 StarTimes outlets nationwide before the end of the third quarter of 2026, with a view to extending the model to more than 200 StarTimes locations nationwide.
Both parties have promised to continue working together to democratise access to clean energy financing, empowering more Nigerians to solarise their homes and businesses while contributing to a greener future.
“Sterling exists to enrich lives, and we believe that access to clean, reliable energy should be within everyone’s reach. Through this partnership with StarTimes, we are democratising access to solar by bringing financing directly to the point of need, enabling more families and businesses to transition to sustainable energy without the burden of prohibitive upfront costs. This is about unlocking opportunity, improving livelihoods, and powering Nigeria’s future,” the Divisional Head of Renewable Energy and Mobility at Sterling Bank, Mr Darlington Nwankwo, said.
Also commenting, the Vice President of StarTimes Nigeria, Mr Eric Xiao, said, “With the rollout of the Sterling Solar Financing Hubs, we are doing more than just selling solar products; we are building a sustainable energy ecosystem. By integrating StarTimes’ extensive service network with Sterling Bank’s professional financial services, we are significantly lowering the barrier for Nigerian households and small businesses to access clean energy.
“Moving forward, we will continue to deepen this partnership, ensuring that more Nigerians can enjoy reliable, affordable, and smart energy solutions, ultimately turning our vision of energy accessibility into a reality for all.”
By Modupe Gbadeyanka
The Nigeria Business Summit Regional Tour of Stanbic IBTC Bank made a detour to Jogor Centre, Ibadan, Oyo State, on Wednesday, July 15, 2026, to empower Micro, Small, and Medium Enterprises (MSMEs).
The event brought together business leaders, development partners and government representatives to discuss pathways for sustainable enterprise development across the South-West.
Participants engaged in practical masterclasses on export opportunities; access to finance and business growth strategies; gaining actionable insights into market expansion; trade documentation; credit readiness; financial record-keeping; and structured financing solutions designed to support long-term business success.
The Head of Enterprise Banking at Stanbic IBTC Bank, Ms Olajumoke Bello, informed participants that the programme is part of the lender’s commitments to supporting MSMEs through practical business education, strategic partnerships and improved access to growth opportunities.
The Executive Director of Business and Commercial Banking at Stanbic IBTC Bank, Mr Remy Osuagwu, on his part, said, “Our ambition is to be more than a financial institution to Nigerian businesses. We want to be a trusted growth partner, providing the financing, business insights and advisory support entrepreneurs need to build sustainable enterprises and unlock new opportunities.”
Similarly, the chief executive of Stanbic IBTC Bank, Mr Wole Adeniyi, who reinforced the company’s commitment to enterprise development, highlighted the importance of providing businesses with the right support structures to enable sustainable growth and long-term competitiveness.
“At Stanbic IBTC, we believe that sustainable economic growth depends on the success of small and growing businesses. That is why we are focused on providing access to finance, practical advisory support and the connections businesses need to move from ambition to scale,” he stated.
The Oyo State Commissioner for Investment, Trade, Cooperatives, and Industry, Professor Soliu Adelabu, said the initiative was designed to support businesses and strengthen the state’s entrepreneurship ecosystem, praising the bank for its support for traders, entrepreneurs, and artisans in the state.
The Permanent Secretary in the Oyo State Ministry of Women Affairs and Social Inclusion, Mrs O.M. Shotonwa-Roagess, highlighted the importance of strategic partnerships in expanding economic opportunities for women and vulnerable groups across Oyo State. She noted that the ministry remains open to collaborating with organisations such as Stanbic IBTC, development partners and the private sector to drive financial inclusion, entrepreneurship and sustainable economic empowerment.
The Nigeria Business Summit Regional Tour forms part of Stanbic IBTC’s broader commitment to empowering entrepreneurs through capacity building, financial inclusion and strategic business support, helping enterprises unlock new opportunities for growth and long-term success.
The Ibadan leg built on the momentum of previous tour stops in Katsina and Aba.
By Adedapo Adesanya
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, says Nigeria anticipates remittances from citizens living abroad to increase by two-thirds in 2026 as it seeks to bolster its foreign-exchange reserves to $1 billion monthly.
“We are expecting that by the end of the year, we will hit about a billion Dollars a month from diaspora remittances,” he said at the 14th Annual BusinessDay CEO Forum in Lagos on Thursday, themed From Stability to Shared Prosperity.
Mr Cardoso said remittances are expected to be boosted from more than $600 million currently, banking on the CBN’s deliberate target at remittances to diversify reserve sources beyond oil earnings.
According to him, the apex bank engaged Nigerians abroad, banks and international partners to identify barriers to official remittance flows.
He said the lender subsequently reviewed policies to ensure easier movement of funds into and out of the country.
Mr Cardoso described the approach as providing free entry and free exit for foreign exchange.
He said the reforms helped double diaspora inflows within one year and exceeded initial expectations, also projecting annual remittances could reach about $8 billion if the current momentum was sustained, adding that the development reflected growing confidence in Nigeria’s financial system and foreign exchange market.
Mr Cardoso said reforms introduced by the apex bank had restored stability in the foreign exchange market and improved investors’ confidence.
He identified exchange rate unification as one of the central bank’s major achievements under the reforms programme.
According to him, replacing multiple exchange rate windows with a market-driven system eliminated distortions and improved transparency.
Mr Cardoso said improved foreign exchange liquidity and stronger reserves were among the gains from the reforms.
He said Nigeria’s net external reserves had risen from about $3 billion at the start of the reforms to above $40 billion currently, noting that gross external reserves had grown to about $52 billion, representing about 10 months of import cover.
According to him, the reserves are designed to shield the economy from external shocks and excessive market volatility.
He said the reserves were not meant for routine interventions or day-to-day exchange rate management.
