Jim Ovia, the chairman and founder of Zenith Bank, and Tony Elumelu, the Chairman of UBA, are set to receive a staggering N25.4 billion and N12.71 billion dividend payout respectively for the 2024 financial year, an outcome of their banks’ record-breaking performance.

The Zenith payout, scheduled for April 15, 2025, follows a year in which the bank delivered an exceptional profit after tax of N1.03 trillion, a significant 52.5% increase from the N676.9 billion reported in the previous year.

The financial statements for the year ended December 31, 2024, reveal that the Board of Directors has proposed a final dividend of N4.00 per share. This, when combined with the N1.00 interim dividend per share paid earlier in the year, brings the total dividend payout to N5.00 per share.

For Ovia, whose direct shareholding stands at 3,552,949,395 shares and indirect holding at 1,529,851,344 shares, the total shareholding of 5,082,800,739 shares translates to a windfall of N25,414,003,695.

The increased dividend payout reflects the bank’s strong earnings performance, which saw gross earnings rise to N3.9 trillion, a sharp increase from N2.39 trillion in the previous year. A significant driver of this revenue boost was interest income, which more than doubled to N2.7 trillion, compared to N1.14 trillion in 2023.

The high-interest-rate environment in Nigeria, fueled by the Central Bank of Nigeria’s (CBN) aggressive monetary policy stance, has allowed tier-one banks like Zenith to capitalize on rising yields on government securities while expanding their loan books.

Zenith Bank’s net interest income climbed to N1.73 trillion, supported by strong earnings from loans and advances as well as strategic investments in low-risk government securities such as treasury bills. The bulk of the bank’s revenue came from its Nigerian operations, which generated N3.5 trillion out of the total N3.97 trillion in net consolidated revenue.

Meanwhile, its African and European operations recorded a revenue increase to N510 billion, up from N281.1 billion in the prior year, demonstrating the bank’s growing international footprint.

Tony Elumelu to Receive N12.71 Billion Dividend from UBA

Meanwhile, another prominent name in Nigeria’s financial sector, billionaire investor Tony Elumelu, is also set to receive a significant dividend payout of N12.71 billion from United Bank for Africa (UBA) following the bank’s robust financial performance in 2024.

Elumelu, who serves as Chairman of UBA, owns a total of 2,542,511,824 shares in the bank, spread across both direct and indirect holdings. His direct shareholding stands at 195,124,581 shares, while his indirect holdings are spread across three investment entities: HH Capital Limited, Heirs Holdings Limited, and Heirs Alliance Limited. The sheer size of his holdings secures him one of the highest individual dividend earnings from UBA’s latest financial results.

UBA declared a total dividend of N5.00 per share, marking a significant increase from the previous year. The final dividend of N3.00 per share, combined with an interim dividend of N2.00 per share, resulted in a total payout ratio of 26.6%, a significant jump from the 16.32% recorded in 2023. Consequently, UBA’s total dividend payout surged to N147.05 billion, compared to N47.88 billion in the prior year, reflecting the bank’s record-breaking financial performance.

The bank reported a pre-tax profit of N803.7 billion, a 6% increase from N757.6 billion in 2023. After-tax profit climbed by 26.14% to N766.5 billion, marking the highest annual profit in the bank’s history. UBA also recorded substantial growth in key financial metrics, with gross earnings surging by 53.6% to N3.19 trillion, up from N2.08 trillion in 2023.

UBA, one of Nigeria’s five largest banks, known as FUGAZ (FirstHoldCo, UBA, GTCO, Access Holdings, and Zenith Bank), also witnessed a remarkable expansion in total assets, which grew to N30.3 trillion, an increase of N9.7 trillion from the N20.65 trillion reported in the previous year. The bank’s 2024 full-year results were highly anticipated by investors, especially amid a declining stock market.

Over the last two years, UBA has posted a cumulative profit of N1.37 trillion, a striking contrast to the N570.4 billion recorded over the preceding five-year period. This rapid growth highlights the bank’s improved operational efficiency and strategic execution. Despite economic challenges, UBA has managed to maintain strong performance, driven by its pan-African presence and an expanding balance sheet.

For Elumelu, this dividend payout reinforces his deep investment in UBA’s success, a testament to his role in driving the bank’s expansion across Africa and beyond.

The performances of both Zenith Bank and UBA highlight a booming Nigerian banking sector, one that is thriving despite economic headwinds. With record profits, increasing revenues, and substantial dividend payouts, these banks continue to solidify their positions as leading financial institutions in Africa.

The high-interest-rate environment, fueled by the CBN’s stringent monetary policy, has proven beneficial for banks, driving interest income growth and strong financial performance. Analysts anticipate that, with inflationary pressures persisting, tier-one banks like Zenith and UBA will continue to enjoy elevated earnings, even as economic uncertainty remains a concern.

The record payouts to Jim Ovia and Tony Elumelu demonstrate the massive wealth accumulation among Nigeria’s top banking executives, reinforcing their financial status as key players shaping the country’s financial sector.

The Nigeria Economic Summit Group (NESG) has urged the Federal Government to maintain crude oil production at 2.2 million barrels per day (bpd), emphasizing that this is crucial for ensuring the viability of the 2025 budget and stabilizing the country’s economy.

Dr. Tayo Aduloju, the Chief Executive Officer of NESG, made this recommendation during the group’s media briefing on its 2025 strategic vision and private sector macroeconomic outlook in Abuja. According to him, achieving this production level is not just a revenue target but a necessary condition for foreign exchange stability and overall economic growth.

Aduloju pointed out that Nigeria’s oil production has fluctuated significantly in recent years, ranging between 1.1 million bpd, 2.2 million bpd, and a peak of 2.8 million bpd. He stressed that despite these variations, the 2.2 million bpd target remains realistic, given the current administration’s commitment to increasing output.

“Hitting 2.2 million bpd crude production, regardless of the crude oil price, is necessary for the budget to be realistic,” Aduloju said. “The government has shown since it came into office that crude production moved from 1.1 million bpd to 2.2 million bpd, and even to 2.8 million bpd.”

His statement aligns with the NESG’s latest report, “The Arc of the Possible,” which outlines specific short- and medium-term strategies for Nigeria’s economic transformation. The report details how a stable and robust crude oil production strategy can provide the financial foundation necessary for critical policy implementation.

NESG’s Call Comes Amid Oil Price Rally Fueled by Geopolitical Tensions

The NESG’s demand for increased oil production comes at a time when global crude prices are on the rise, driven largely by geopolitical conflicts and shifting U.S. sanctions that have heightened concerns over supply disruptions.

As of 0949 GMT, Brent crude was trading at $74.11 per barrel, extending an eight-day winning streak—the longest since May 2022. Similarly, U.S. West Texas Intermediate (WTI) crude rose slightly to $69.97 per barrel. Both benchmarks have gained approximately 2.5% this week and are up 7% from multi-month lows recorded in early March.

Market analysts attribute this rally to increasing U.S. sanctions on Venezuela and Iran, two major oil-producing nations. The United States has imposed fresh restrictions on Venezuelan crude exports, making it more difficult for the South American country to sell its oil on the global market. Additionally, new sanctions on China’s crude imports from Iran have created uncertainty, further tightening the oil supply.

June Goh, a senior oil analyst at Sparta Commodities, explained that these developments have contributed to an apparent shortage of crude oil in the market.

“The potential loss of Venezuelan crude exports to the market due to secondary tariffs and the possibility of similar restrictions on Iranian barrels has created an apparent tightness in crude supply,” she told Reuters.

The United States has imposed a 25% tariff on potential buyers of Venezuelan crude, adding further restrictions to Venezuela’s ability to trade. At the same time, trade of Venezuelan oil to China, its largest buyer, has stalled, as reported by Reuters. India’s Reliance Industries, which operates the world’s largest refining complex, is now set to halt Venezuelan oil imports, according to sources familiar with the matter.

The combined effect of these sanctions has led to concerns over global supply constraints, pushing oil prices higher. While these rising prices benefit oil-producing nations like Nigeria, they also present challenges, particularly in terms of domestic inflation and fuel pricing.

Nigeria’s Economic Prospects Under Higher Oil Prices

For Nigeria, a sustained oil price rally could provide much-needed revenue, particularly as crude oil earnings remain a key component of the country’s budget framework. In February 2025, President Bola Tinubu signed the N54.99 trillion 2025 appropriation bill into law. This represents a 99.96% increase from the N27.5 trillion budget of 2024 and was passed by the National Assembly on February 13 after undergoing several revisions.

The government has set a $75 per barrel benchmark price for crude oil in the 2025 budget. With Brent crude currently trading at around $74.11 per barrel, the price is nearing Nigeria’s official projection. If the upward trend continues, Nigeria’s revenue targets could be met or even exceeded.

However, Aduloju warned that reaching the 2.2 million bpd production target will require political stability and security in oil-producing regions. He pointed to recent political tensions in Rivers State, a major oil-producing area, as a potential risk factor that could disrupt production.

NESG Report Projects Stronger Economic Growth in 2025

The NESG’s macroeconomic outlook report, “Stabilization in Transition: Rethinking Reform Strategies for 2025 and Beyond,” presents a positive economic forecast if Nigeria implements the right policies. It projects that effective economic reforms could push Nigeria’s GDP growth to 5.5% in 2025, with inflation declining to 24.7% under optimal conditions.

Several factors are expected to drive this growth, including improvements in power supply and fuel availability, which will reduce operational costs for businesses, particularly Nano, Micro, Small, and Medium Enterprises (NMSMEs). Increased foreign exchange liquidity is also expected to provide relief for manufacturers who rely on imported raw materials.

The report further highlights agricultural sector reforms as a critical growth driver, addressing issues related to financing, storage, and logistics. Additionally, it emphasizes the need for enhanced security in farming regions, which would lead to increased food production and ease inflationary pressures.

Aduloju stressed that achieving these targets will require strong coordination between fiscal and monetary authorities, urging the government to align its economic policies to ensure smooth implementation.

Oil Market Uncertainty and Its Implications for Nigeria

While the rise in crude prices presents an opportunity for increased revenue, it also introduces economic risks. Higher oil prices tend to push up fuel costs, and in Nigeria, changes in domestic pump prices have historically been linked to fluctuations in global crude markets.

U.S. crude inventory data released by the Energy Information Administration (EIA) showed that U.S. crude stockpiles fell by 3.3 million barrels last week, far exceeding analysts’ expectations of a 956,000-barrel decline. This reduction in U.S. supply has provided further support for global crude prices.

However, the long-term sustainability of current price levels remains uncertain, given ongoing geopolitical tensions, trade conflicts, and global economic instability. Analysts at BMI maintain their 2025 forecast for Brent crude at $76 per barrel, down from an average of $80 per barrel in 2024, citing uncertainties in the oil market.