"Nigerian Banks’ H2 2025 Performance Hinges on Recapitalisation and Dividend Strategies"

Nigerian banks’ performance in the second half of 2025 will largely depend on progress with recapitalisation efforts and their ability to sustain dividend payments. According to Comercio Partners, banks that demonstrate robust recapitalisation strategies and maintain consistent dividend payouts are expected to outperform their peers. However, some banks like Access Bank, Zenith Bank, and First Bank could face valuation challenges until clarity on dividend payments is provided. The Central Bank of Nigeria has mandated higher capital requirements with a compliance deadline set for March 2026, and eight banks have already met these new thresholds. Success in the sector will hinge on proactive capital management, cost optimisation, risk discipline, and operational excellence amid stabilising monetary policy. While interest income will remain a significant revenue source, banks are expected to face margin compression and will need to focus on core banking resilience. Investors are closely monitoring banks’ capital restoration and dividend plans, which will determine sector growth and confidence in H2 2025.

References

Punch NG, "Banks’ H2 performance tied to recapitalisation, dividend plans" (https://punchng.com/banks-h2-performance-tied-to-recapitalisation-dividend-plans/)

Comercio Partners H2 2025 Macroeconomic Outlook, as featured in Punch NG