Access Holdings clarifies dividend position amid strong 2025 earnings
Access Holdings Plc Addresses Dividend Concerns Amid Strong 2025 Performance
By Peter Egwuatu
Access Holdings Plc has reiterated its dedication to long-term shareholder value and sustainable returns, following a successful financial year in 2025. The company clarified its decision to refrain from dividend payments for the year ending December 31, 2025, during a recent earnings call with investors.
Management acknowledged shareholders’ concerns regarding the lack of a dividend declaration, despite significant earnings growth and an expanded balance sheet. The firm emphasized that the non-payment was not due to performance issues but was related to alignment with regulatory matters that must be resolved before dividends can be distributed.
Innocent C. Ike, Group Managing Director and Chief Executive Officer, stated, “Access Holdings has a strong history of consistent dividend payments, and rewarding shareholders remains a core priority for the Board and Management. The non-payment of dividends for 2025 was not due to earnings weakness or cash flow constraints, but an alignment with regulatory and prudential guidelines.”
Ike further noted that the company’s performance in 2025 reflects its robust franchise and ability to generate shareholder value. He expressed a commitment to resuming dividend distributions on a sustainable basis, pending the resolution of regulatory requirements.
Access Holdings indicated that while dividends were proposed at both the half-year and full-year marks, regulatory approvals were not granted. At the halfway point, the delay stemmed from Section 7.1 of the Central Bank of Nigeria Guidelines for Financial Holding Companies, a matter that has been resolved following a successful private placement.
However, at the full-year stage, a new issue arose under Section 19(8)(c) of the Bank and Other Financial Institutions Act (BOFIA), which restricts investments in foreign banking subsidiaries in relation to shareholders’ funds. The Group has been allotted a twelve-month period to address this situation, which will involve partial divestment from certain banking subsidiaries while maintaining a significant majority shareholding.
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