Access Holdings Plc clarifies that its decision not to pay dividends for the 2025 financial year was due to regulatory constraints, not weak earnings performance.
In a statement on NGX, the company clarified its position at its full-year 2025 investors and earnings call.
There have been concerns over the failure of three banks to declare dividends for shareholders in their 2025 full-year financial statements due to bad loans, with Nestoil Limited, an indigenous oil giant, accounting for approximately N2.9 trillion in indebtedness.
The banks reportedly hit by bad debts from Nestoil are United Bank of Africa (UBA) and Access Bank, which did not declare dividends.
At the event, the company addressed concerns from shareholders over the absence of dividend payments despite strong financial results.
Innocent Ike, the Group Managing Director and Chief Executive Officer (CEO) of Access Holdings, stated that the group remains committed to rewarding shareholders but must align with prudential guidelines.
“Access Holdings has a strong history of consistent dividend payments, and rewarding shareholders remains a core priority,” Ike said.
“The non-payment of dividend for 2025 was not due to earnings weakness or cash flow constraints, but an alignment with regulatory and prudential guidelines.”
The company proposed dividends at both half- and full-year stages, but regulatory approvals were not obtained.
Access Holdings further said the initial constraint linked to guidelines for financial holding companies has been resolved following a private placement.
“At full-year, an additional matter arose under Section 19(8)(c) of BOFIA, which places limits on investments in foreign banking subsidiaries relative to shareholders’ funds,” the group said.
The group said it will partially divest from some banking subsidiaries but will still retain its super majority shareholding.
Access Holdings said it has been given a 12-month window to address the exposure
“Our performance in 2025 demonstrates the strength of the franchise and its capacity to generate value for shareholders,” Ike said.
“Our focus is to ensure that shareholder distributions resume on a sustainable basis once all regulatory conditions are satisfied.”
The company disclosed that it is strengthening its capital and liquidity buffers and engaging regulators to resolve outstanding issues.
Access Holdings promised to provide updates as discussions progress, to restore dividend payments once approvals are secured.
Administrator and Writer
