Access Holdings Flags Dividend Uncertainty Over Regulations

Access Holdings Plc has indicated uncertainty in declaring an interim dividend for the first half of 2026 due to a breach of regulatory limits on foreign bank investments. The company reported record earnings for the 2025 financial year during an earnings call on May 5, 2026.

According to the Bank Financial Institutions Act (BOFIA), Nigerian banks are prohibited from investing more than 10 percent of their shareholder funds in foreign bank subsidiaries. However, Access Holdings' current exposure stands at approximately 19.3 percent, nearly double the regulatory threshold.

Mr. Innoc Ik, the Group Managing Director and Chief Executive Officer, explained that the recommendation for dividends for the half-year and full-year 2025 is not secure due to regulatory alignment issues.

The company is working on a capital optimization initiative and a balance sheet restructuring policy to bring its foreign exposure within the allowed limits. Until the regulatory breach is resolved, Access Holdings will be unable to declare the interim dividend for H1 2026, raising concerns among income-focused shareholders.