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🏦 Top Nigerian Banks Hit by CBN Directive Suspending Dividends and Foreign Investments

🏦 Top Nigerian Banks Hit by CBN Directive Suspending Dividends and Foreign Investments

Plus: 📱 Bosun Tijani Elected Vice Chair of ITU

Innovation Village
June 19, 2025

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Today’s Menu ☕️

🏦 Top Nigerian Banks Hit by CBN Directive Suspending Dividends and Foreign Investments
💵 MTN, Chenosis, and TransUnion Launch Mobile-Based Credit Score for the Underserved
📱Nigerian Telcos Begin Direct USSD Billing to Mobile Users, Replacing Bank-Telco Model
📱Bosun Tijani Elected Vice Chair of the ITU Council for 2025
💵 NIBSS Unveils National Payment Stack, Pioneering the Future of Nigeria’s Digital Payments
📱Samsung vs. Tecno: Which Phone Brand Actually Gives You More for ₦200k in Nigeria?

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🏦 BANKING

Top Nigerian Banks Hit by CBN Directive Suspending Dividends and Foreign Investments

Some of Nigeria’s largest banks have been directly affected by a new directive from the Central Bank of Nigeria (CBN) that suspends dividend payouts, executive bonuses, and new foreign investments for lenders still operating under regulatory forbearance.

In a circular issued on June 13, 2025, the apex bank ordered these restrictions to strengthen capital adequacy across the sector and ensure compliance with prudential standards. The move comes as the CBN tightens supervision ahead of its 2026 banking recapitalization deadline.

Major Banks Affected

According to a RENCAP report, top banks impacted by the directive include Zenith Bank, First Bank (FBN Holdings), Access Bank, Fidelity Bank, and FCMB—all of which still have portions of their loan portfolios under regulatory forbearance.

Zenith Bank leads the list with 23% of its loan book under forbearance.
First Bank follows with 14%.
Access Bank has 4% exposure.
Fidelity Bank and FCMB are also significantly affected.

In contrast, GTCO and Stanbic IBTC have exited the forbearance regime and are therefore exempt from the directive. These two banks are expected to continue dividend payments and performance-related compensation without restriction.

CBN’s Reasoning Behind the Move

Regulatory forbearance allows banks to operate temporarily outside certain prudential norms—especially around loan classifications and provisioning—typically during economic shocks or sector-wide instability. The CBN has now determined that such banks must reinforce their capital buffers and resolve any asset quality concerns before distributing profits or making offshore investments.....……continue reading

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📱 TELECOMS

Nigerian Telcos Begin Direct USSD Billing to Mobile Users, Replacing Bank-Telco Model

Starting Wednesday, June 18, 2025, mobile subscribers across Nigeria started paying for USSD services directly from their airtime, marking a major policy shift in how telecom-based financial services are billed. The Association of Licensed Telecom Operators of Nigeria (ALTON) confirmed the transition to the End-User Billing (EUB) model in an official announcement that overrides an earlier notice by some banks which had claimed that deductions would begin from June 3.

The change follows a directive by the Nigerian Communications Commission (NCC) in collaboration with the Central Bank of Nigeria (CBN), aimed at resolving long-standing disputes between telecom operators and deposit money banks over who shoulders the cost of USSD services.

With the new end-user billing model, users will now pay ₦6.98 per 120 seconds for each USSD session, with charges deducted directly from their airtime. A prompt will be issued to obtain the customer’s consent before any deductions are made. Only successful sessions will be charged, a feature ALTON says will help eliminate issues of double billing and failed transaction charges.

Previously, telcos billed banks for USSD usage under a corporate billing model. However, this setup led to significant disputes over unpaid fees, service interruptions, and ultimately, a ₦250 billion debt owed to telecom operators by banks.........…continue reading

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💵 FINANCIAL SERVICES

MTN, Chenosis, and TransUnion Launch Mobile-Based Credit Score for the Underserved

Millions of South Africans who have long been overlooked by the traditional credit system are finally getting a chance to be seen—thanks to their mobile phones. In a bold collaboration, MTN, its data exchange platform Chenosis, and TransUnion Africa have rolled out a credit scoring solution that uses patterns in phone usage to determine a person’s financial trustworthiness.

Dubbed the TransUnion Telco Data Score, this new model offers a lifeline to individuals without formal credit histories—often referred to as “credit invisible.” Instead of relying on salary slips or bank records, the system uses anonymized mobile call data records (CDRs)—like how often a person recharges airtime or who they call regularly—to build a behavioral profile that lenders can use to assess risk.…...…continue reading

📱TELECOMS

Bosun Tijani Elected Vice Chair of the ITU Council for 2025

Dr. Bosun Tijani, Nigeria’s Minister of Communications, Innovation, and Digital Economy, has been elected Vice Chair of the International Telecommunication Union (ITU) Council for 2025. This historic appointment marks the first time in nearly 50 years that Nigeria will hold a leadership position on the ITU Council.

The ITU is the United Nations’ leading agency for information and communication technologies. As Vice Chair of the Council, Dr. Tijani will play a critical role in shaping global telecommunications and digital infrastructure policies. His appointment comes at a pivotal time when international cooperation is essential for building a secure, inclusive, and sustainable digital future...…continue reading