CBN Halts Banks’ Foreign Investments, Dividends & Bonuses Amid Market Activity Surge
In a directive issued on June 13, 2025, the Central Bank of Nigeria (CBN) announced a temporary suspension on dividend payments, bonuses, and foreign investments by Nigerian banks. The move, outlined in a circular titled “Letter to All Banks: Temporary Suspension of Dividend Payments, Bonuses and Investment in Foreign Subsidiaries”, aims to tighten regulatory oversight and maintain financial system stability amid growing economic pressures.
The CBN’s directive restricts banks from embarking on new offshore ventures or increasing capital exposure in foreign subsidiaries. This is part of a broader strategy by the apex bank to manage capital outflows and support domestic economic resilience, especially with recent volatility in the foreign exchange and monetary policy environment.
This regulatory stance is expected to impact investor sentiment, especially among stakeholders in banks with existing or planned foreign operations. Analysts suggest that while the move may curb immediate risks, it could also slow long-term expansion plans and affect shareholder expectations regarding returns and international growth prospects.
Despite the CBN’s announcement, market activity remained strong. Key stocks such as Zenith Bank, Access Holdings, United Bank for Africa (UBA), Nigerian Breweries, and Fidelity Bank were among the most traded on the Nigerian Exchange Limited (NGX). This suggests continued investor interest, particularly in top-tier equities, even amid tightening regulations.
In total, the NGX recorded 19,727 deals with a trading volume of 640,082,716 shares valued at N26.011 billion. The vibrant trading session signals resilience in the Nigerian capital market, though market watchers will closely monitor the long-term effects of the CBN’s directive on financial stocks and overall investor confidence.
Source: Business day