Section 16: Restriction of Dividend.

(1) A bank shall not pay dividend on its shares until-
(a) all its preliminary expenses, organisational expenses, shares selling commission, brokerage, amount of losses incurred, and other capitalised expenses not represented by tangible assets have been completely written off;
(b) adequate provisions have been made to the satisfaction of the Bank, for actual and contingent losses on assets, liabilities, off balance sheet commitments and such unearned incomes as are derivable therefrom;
(c) it has complied with any capital ratio requirement as specified by the Bank pursuant to section 13 of this Act; and
(d) it has satisfied any other corporate governance and prudential requirements that may be stipulated by the Bank.
(2) Any director, manager or officer who fails to comply with the requirements of this section of this Act commits an offence and is liable on conviction to a term of imprisonment of not less than three years or to a fine of not less than N2,000,000 or to both.