Access Holdings Plc has explained why it did not pay dividends to shareholders for the 2025 financial year despite recording strong financial growth and improved business performance.
The company gave the clarification during its full-year 2025 investors and earnings call, where management addressed concerns raised by shareholders over the absence of dividend payments.
According to the Group, the decision was not caused by poor earnings, weak cash flow, or financial struggles. Instead, it was linked to regulatory and prudential requirements that needed to be resolved before dividend payments could be approved.
Access Holdings stated that rewarding shareholders remains one of its major priorities and assured investors that the company remains financially strong.
Speaking during the investors’ call, the Group Managing Director and Chief Executive Officer of Access Holdings Plc, Innocent C. Ike, said the company has maintained a long-standing tradition of paying dividends and creating value for shareholders.
He explained that the inability to pay dividends for 2025 should not be interpreted as a sign of weakness in the company’s operations.
According to him, the Group delivered a strong financial performance during the year, demonstrating the strength of its business model and its ability to continue generating returns for investors.
Ike noted that the company is focused on ensuring dividend payments resume once all regulatory conditions and approvals have been fully addressed.
Access Holdings further revealed that dividend payments were actually proposed during both the half-year and full-year periods in 2025. However, the necessary approvals from regulators were not granted.
The company explained that the first issue emerged during the half-year period and was connected to Section 7.1 of the Central Bank of Nigeria guidelines for Financial Holding Companies.
This issue has now been resolved following the successful completion of a private placement approved by regulators.
However, another challenge later surfaced at the full-year stage under Section 19(8)(c) of the Banks and Other Financial Institutions Act (BOFIA).
The regulation places limits on the level of investments financial holding companies can maintain in foreign banking subsidiaries when compared to shareholders’ funds.
As part of efforts to comply with the regulation, Access Holdings disclosed that it has been given a 12-month period to fully correct the situation.
To achieve this, the Group plans to partially divest from some of its banking subsidiaries outside Nigeria. Despite the planned divestments, the company said it would still retain super-majority ownership in those subsidiaries.
The company stressed that these regulatory adjustments are aimed at strengthening long-term stability and ensuring full compliance with banking regulations.
Market analysts believe the clarification may help reassure investors who were concerned about the company’s dividend suspension despite its strong earnings performance.
Access Holdings also maintained that its long-term strategy remains focused on sustainable growth, stronger capital positioning, and consistent shareholder value creation.
The Group expressed confidence that once the regulatory matters are fully resolved, dividend distributions will continue on a sustainable basis in line with its tradition of rewarding shareholders.
