Access Holdings hints at possible interim dividend suspension for H1 2026
Access Holdings Plc has informed investors that it may skip the payment of an interim dividend for the first half of 2026 as the financial services group moves to address a significant regulatory breach concerning its foreign investments.
The disclosure was made during an earnings call on May 5, 2026, where the group detailed the hurdles preventing profit distribution despite achieving record-breaking financial results in the previous year.
The primary obstacle stems from Section 19(8)(c) of the Banks and Other Financial Institutions Act (BOFIA), which mandates that Nigerian banks must not invest more than 10% of their shareholders’ funds in foreign banking subsidiaries.
Access Holdings revealed that its current exposure stands at approximately 19.3%, nearly double the permissible limit.
This breach has prompted regulators to withhold approval for dividend payments, even though the group recommended payouts for both the half-year and full-year 2025 cycles.
Access Holdings Group Managing Director and CEO, Mr. Innocent Ike, explained that while a previous regulatory constraint linked to Central Bank of Nigeria (CBN) guidelines was resolved through a private placement, this fresh issue regarding foreign subsidiary limits emerged during the full-year audit.
He revealed that the Management has now been granted a 12-month window to remediate the position. To cure the breach, the group is currently implementing capital optimization initiatives, balance sheet actions, and a comprehensive review of its governance frameworks.
This regulatory scrutiny follows years of aggressive pan-African expansion that has transformed Access Holdings into a global player. International operations now contribute a staggering 52% of the group’s profit before tax and account for 33% of its total loans. While this diversification has bolstered earnings, the cumulative capital committed outside Nigeria has now triggered concentration concerns from regulators.
They further noted that most acquisitions are now substantially completed, and the bank is exploring the repatriation of dividends from these offshore entities or potential restructuring to bring the group back into alignment with Nigerian law.
Despite the uncertainty surrounding dividends, the group’s underlying financial health remains robust. Access Holdings reported that gross earnings surged to N5.53 trillion in 2025, with profit before tax crossing the N1 trillion milestone for the first time. Total assets also grew by over 24% to reach N51.6 trillion.
While the group maintains a strong Capital Adequacy Ratio of 18.3%, shareholders accustomed to consistent payouts may face a period of waiting until the group successfully rebalances its foreign exposure to the satisfaction of the regulators.