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Access Holdings Risks Dividend Suspension Amid Regulatory Pressure

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Access Holdings dividend suspension risk rises as regulators flag excess foreign investments, potentially delaying payouts in H1 2026

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Access Holdings Plc is facing the possibility of suspending interim dividend payments in the first half of 2026 as regulatory concerns over its foreign banking investments place increasing pressure on its capital strategy.

Also read: Access Bank Retains Top Brand Position in Bold 5th Win

The development was disclosed during the group’s earnings presentation on 5 May 2026, where executives reviewed its 2025 financial performance and addressed key regulatory challenges affecting shareholder returns.

Despite posting one of its strongest financial results in recent years, management confirmed that dividend approvals have been delayed due to compliance issues linked to offshore subsidiary investments.

Under Section 19(8)(c) of the Banks and Other Financial Institutions Act (BOFIA), Nigerian banks are restricted from investing more than 10 per cent of shareholders’ funds in foreign banking subsidiaries.

Access Holdings, however, revealed that its current exposure stands at approximately 19.3 per cent, significantly above the regulatory threshold.

The breach has triggered heightened scrutiny from regulators, particularly as the group’s aggressive expansion across Africa and other international markets continues to reshape its balance sheet structure.

Group Managing Director and Chief Executive Officer Innocent Ike disclosed that while interim and full-year dividend payments for 2025 were initially recommended, regulatory clearance was stalled due to compliance concerns.

He explained that the latest issue arose under BOFIA provisions governing foreign investment exposure, with regulators granting the group a 12-month window to rectify its position.

An earlier regulatory concern affecting half-year 2025 dividends had already been resolved following a private placement exercise, but the new compliance gap has now become the primary obstacle to dividend approval.

Management has since initiated corrective measures, including capital optimisation strategies, balance sheet restructuring, and a review of governance frameworks aimed at restoring regulatory compliance.

The situation implies that Access Holdings dividend suspension risk could materialise if the group fails to reduce its offshore exposure within the stipulated timeframe.

The regulatory pressure comes amid the group’s rapid international expansion, which has significantly increased its exposure to foreign markets and diversified its earnings base.

According to earnings data, international operations now account for 33 per cent of the loan portfolio and 23 per cent of shareholders’ funds, while contributing 52 per cent of profit before tax in 2025.

Nigeria’s share of profit before tax has consequently declined to 48 per cent, highlighting the growing influence of offshore subsidiaries on overall performance.

Despite the regulatory challenge, Access Holdings delivered record financial results, with gross earnings rising 13.3 per cent to ₦5.53 trillion and profit before tax surpassing ₦1 trillion for the first time.

Profit after tax rose to ₦743 billion, while customer deposits surged by 53.4 per cent to ₦34.6 trillion and total assets climbed to ₦51.6 trillion.

However, impairment charges more than doubled to ₦523.6 billion following the group’s exit from CBN forbearance arrangements, reflecting tighter risk management measures.

The group also maintained a strong capital position, with a Capital Adequacy Ratio of 18.3 per cent and 21 per cent for its banking subsidiary, supported by a ₦40 billion private placement.

Analysts say attention will now focus on how quickly the bank can resolve its regulatory breach through potential divestments, capital restructuring, or repatriation of offshore earnings.

Also read: WATAF Urges Stronger Media-Tax Cooperation in Africa

Until then, uncertainty remains over future dividend payouts, particularly for investors accustomed to the group’s consistent returns.

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WEMA BANK SETS NOVEMBER 6 FOR HACKAHOLICS 7.0 GRAND FINALE, UNVEILS “FESTIVAL OF THE FUTURE” AS THEME

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Wema Bank, Nigeria’s oldest indigenous bank, most innovative and pioneer of Africa’s first fully digital bank, ALAT, has announced November 6, 2026, as the date for the grand finale of Hackaholics 7.0, its flagship innovation platform.

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Themed “Festival of the Future.” The grand finale will bring together innovators, technology leaders, startup founders, investors and other key players in Nigeria’s innovation ecosystem for an immersive celebration of ideas, technology and the possibilities shaping the future.

Beyond the much anticipated announcement of this year’s Hackaholics Finalists, the event will feature innovation showcases, interactive experiences and conversations exploring how emerging technologies are transforming the way people live, work, build and create.

Designed to go beyond the traditional innovation competition, the Festival of the Future will provide a platform for participants and attendees to experience emerging technologies, discover innovative solutions, connect with industry players and engage in conversations about the opportunities and challenges of a rapidly evolving world. The event will also recognise and celebrate outstanding innovators whose ideas have demonstrated the potential to address real-world challenges and create meaningful impact.

Speaking on the significance of the grand finale and the inspiration behind the Festival of the Future, Wema Bank’s MD/CEO, Moruf Oseni, explained that the concept builds on the Bank’s commitment to creating a future of possibilities while encouraging Nigerians to take a more active role in shaping that future.

“The world is changing at an unprecedented pace. Artificial intelligence and emerging technologies are transforming industries, businesses and everyday life, creating opportunities that would have been difficult to imagine just a few years ago. The question is no longer simply what the future holds, but how prepared we are to shape it.

“This thinking inspired the Festival of the Future. We want to create an experience that brings innovation closer to people, encourages meaningful conversations and challenges us to think differently about how we will live, work, build and create in the years ahead,” he said.

Reaffirming Wema Bank’s commitment to supporting innovation and empowering young Nigerians, Oseni noted that Hackaholics has continued to evolve beyond a competition into a platform for discovering talent, nurturing ideas and connecting innovators with opportunities.

“Since we launched Hackaholics, our goal has remained consistent; to provide young Nigerians with the platform, resources, opportunities and support they need to transform their ideas into practical solutions. We believe that the future of innovation in Nigeria must be driven by the talent, creativity and potential of our people.

“With Hackaholics 7.0, we are taking that commitment further. Beyond recognising outstanding ideas, we want to bring together the people, conversations and experiences that can inspire the next generation of solutions. Our ambition is to continue building an ecosystem where innovation thrives, possibilities are unlocked and Nigeria is better positioned for the future,” he added.

Launched on July 1, 2026, under the theme “Powering Possibilities,”Hackaholics 7.0 commenced with a nationwide pitch centre tour designed to discover and support innovative ideas from young Nigerians across different regions of the country.

The four-month tour attracted 5,329 participants and 1,632 innovative ideas and solutions, with pitch centres hosted across seven locations: Uyo, Kano, Yabatech, Benin, Ibadan, Enugu and Lagos.

Through three distinct tracks; the Ideathon, Hackathon and Social Impact, the initiative provided opportunities for students, graduates, technology enthusiasts, developers and social innovators to present solutions addressing challenges across different sectors. The Ideathon focused on promising ideas, the Hackathon provided a platform for technology developers and builders, while the Social Impact track recognised solutions designed to deliver measurable value to society.

At the conclusion of the nationwide tour, 59 participants emerged from the various pitch centres, reflecting the diversity of ideas, talent and innovation discovered throughout the programme.

As Hackaholics 7.0 progresses towards its final stage, the 59 finalists will be further shortlisted to 20, who will present refined versions of their solutions at the Pre-Pitch scheduled for November 4, 2026.

On November 5, the participants will embark on an Ecosystem Tour powered by Wema Bank, providing an opportunity to visit other top institutions within the technology and innovation ecosystem, interact with industry professionals and gain practical insights ahead of the grand finale.

The journey will culminate on November 6 at the Festival of the Future, where the top innovators will be recognised and celebrated.

Through Hackaholics, Wema Bank continues to demonstrate its commitment to driving innovation, supporting entrepreneurship and creating opportunities for young Nigerians to contribute meaningfully to economic development.

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Theparkpay Technologies Limited Strengthens Global Payments Infrastructure with UK FCA Licence

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Theparkpay UK FCA licence strengthens the fintech’s global payments infrastructure as it expands regulated cross-border services across key markets (more…)

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NDIC Commences Payment to Customers of 46 Failed Microfinance Banks

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NDIC payments to depositors begin as customers of 46 failed microfinance banks receive insured refunds of up to N2 million (more…)

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