Banks Are Raising Billions – So Why Are They Still
Paying Dividends?
In 2025,
Nigerian banks are walking a financial tightrope and somehow smiling for the
cameras.
They’re
under CBN pressure to raise fresh capital to meet new regulatory thresholds,
yet they’re still dishing out billions in dividends, almost like its business
as usual.
So, the
real question is:
Why are
banks raising capital with one hand and giving it away with the other?
Let’s
break down what’s happening based on reported data and explore what this
financial double-act means for investors, regulators, and everyone watching
from the sidelines.
Capital In vs. Cash Out What the Reports Show
The
figures below are based on publicly available disclosures and financial news
reports. Exact values may vary.
|
Bank |
Capital Raised (Est.) |
Dividends Paid (Est.) |
Comment |
|
GTCO |
₦209bn |
₦269bn |
Raised big, paid big |
|
Zenith Bank |
₦350bn |
₦195bn |
Classic high-yield play |
|
UBA |
Ongoing |
₦170bn |
Paid big |
|
Fidelity Bank |
₦176bn |
₦89bn |
Pay-out despite recap drive |
|
Access Holdings |
₦351bn |
₦125bn |
Paid big |
Combined
Estimate: Over ₦1.08 trillion raised, with ₦848+ billion returned to
shareholders all in the same fiscal window.
What’s Really Going On?
1. The CBN Said “Recapitalize or Step Aside”
Banks are
scrambling to meet new capital requirements from the Central Bank of Nigeria.
Some are issuing new shares. Others are pursuing private placements or rights
issues.
This
isn’t optional. It’s a survival tactic.
2. Dividend Payouts Are About Confidence, Not Cash
Nigerian
banks know that nothing excites shareholders quite like the words:
“Your
dividend has been credited.”
It
signals strength, continuity, and investor respect especially at a time when
market confidence is fragile.
No
dividend? Stock price tanks.
Big dividend? Investors stay loyal.
3. But Is This Sustainable?
That’s
the billion-naira question.
Paying
out hefty dividends while simultaneously raising fresh equity can dilute value
over time. It also sends a mixed message:
Are you
capital-weak or cash-rich?
Some
analysts call it “fiscal gymnastics” raising money in public to fund private
payouts. In the short term, it keeps everyone calm. But long-term? It could
widen cracks in already fragile balance sheets.
Financial Juggernut Insight
Nigerian
banks aren’t broke but they’re being stretched.
They want
to keep shareholders happy, meet regulatory demands, and maintain market
respect. But serving all three masters at once is a high-wire act.
If you’re a retail investor:
- Know that recapitalization
may dilute your shareholding - Understand that today’s
dividend doesn’t guarantee tomorrow’s - Look past the payout alerts
and watch the balance sheet
It’s not
about what they paid it’s about what they’ll have left.
