CBN Headquarters Abuja
By MBAFAN ADE, Abuja-
The Association of Securities Dealing Houses of Nigeria (ASHON) has expressed concern over the Central Bank of Nigeria’s (CBN) recent circular suspending dividend payments by banks, citing potential stock market volatility.
ASHON Chairman, Mr. Sam Onukwue, described the timing of the directive as “inopportune,” given the ongoing efforts by banks to meet increased minimum capital requirements.
“The announcement of this price-sensitive information has caused shock and dismay due to its potential impact on shareholders and the stock market,” Onukwue said.
According to ASHON, the suspension may erode investor confidence in the banking sector, triggering a sell the bank shares on the Nigeria Exchange Limited (NGX).
ASHON suggests that the CBN could have managed the situation more discreetly to avoid speculation and market volatility
