Access Holdings dividend suspension risk rises as regulators flag excess foreign investments, potentially delaying payouts in H1 2026
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.
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.
Until then, uncertainty remains over future dividend payouts, particularly for investors accustomed to the group’s consistent returns.
