Economy
Excitement as Stock Investors to Pocket N780bn Dividends
By Aduragbemi Omiyale
More than N780 billion will be pocketed by stock investors in Nigeria as dividends proposed by various companies listed on the Nigerian Exchange (NGX) Limited in the coming weeks and months.
The market has been bubbling with activities as a result of the recently proposed dividends from companies, with shareholders rebalancing their portfolios and taking positions.
So far, 16 companies across seven sectors including consumer goods, financial services, industrial goods, oil and gas, services, healthcare and IT, have paid out a total of N782.2 billion as the final dividend payout for the year ended December 31, 2021.
The dividend has remained one of the key factors that traditionally drive stock market activities and aids investment decisions towards stocks across the globe, and the Nigerian bourse is not an exception.
A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, the corporation is able to re-invest the profit in the business called retained earnings and pay a proportion of the profit as a dividend to shareholders.
For the period under review, under the consumer goods sector, Vitafoam paid N1.876 billion, representing N1.50 per share. Dangote Sugar Refinery proposed a final dividend of N12.147 or N1.00 per share, while Nestle Nigeria declared a N20.213 billion dividend of N25.50 per share.
NASCON Allied Industries and Nigerian Breweries set to pay dividends of N1.060 billion and N9.691 billion, representing 40 kobo per share and N1.20 per share, respectively.
Under the financial services sector, shareholders of United Capital, African Prudential, Guaranty Trust Holding Company (GTCO), Zenith Bank and United Bank for Africa (UBA) will receive a total dividend of N9 billion, N1 billion, N79.464 billion, N87.910 and N27.360 billion, representing N1.50 per share, 50 kobo per share, N2.70 per cent, N2.80 per cent and 80 kobo per share in that order.
Also, Dangote Cement and Lafarge Africa listed under the industrial goods sector proposed a final dividend of N340.82 billion, representing N20 per share and N16.108 billion or N1 per share, respectively. Seplat Energy to pay a dividend of $0.426 cent per cent, making a total payout of N250.677 million in naira, while Transcorp Hotels, listed under services sector declared a dividend of N716.977 million or seven kobo (N0.07) per share.
Neimeth International Pharmaceuticals proposed N132.941 million final dividend or seven kobo (0.07) per share, while MTN Nigerian Communications (MTNN) declared a final dividend of N8.57 per share, amounting to N174.442 billion.
Speaking on the development, the Chief Executive Officer, NGX, Mr Temi Popoola, stated that the NGX has continued to be innovative and leverage technology to drive much more activity in the market.
Mr Popoola while stating that NGX strategy for 2022 said the exchange intends to keep building on the momentum on its digital journey across value chains adding that there may be digitalized listings and digitization of its product or offerings.
He noted that this is important because the belly of the Nigerian demography is huge and the exchange currently represented by older people, needs the young generation to bridge that gap, technology is needed and revealed that lots of work will be on the experience, retail, integration of its market to financial service players, especially banks.
While expressing confidence that few listings will take place on the platform of NGX, Popoola said the exchange is looking at diversifying the types of listings across foods, power, agriculture, hence having representation of GDP on the nation’s bourse.
NGX boss further added that the exchange will be partnering with the Securities and Exchange Commission (SEC) in launching a NASDAQ style board- a technology board that will be suited better for technological companies to be flexible enough to find capital formation on the exchange as well as attract capital into Nigeria, for Nigerians in the Diaspora and for investors (foreign and local investors).
Furthermore, market analysts noted dividend-paying stocks is very important to income investors for many reasons, saying that the reason is that dividend payment is playing a role in stock valuation.
“Beyond valuation, dividend-paying stocks can be a good source of stable income streams. Many investors will want to invest in companies with a history of growing dividends,” they said.
Market analyst and Managing Director/CEO APT Securities and Funds Limited, Mr Garba Kurfi commended listed companies for posting impressive results and accounts for 2021, expressing concerns that the declared dividend by these companies did not reflect in the trajectory of the stock market.
According to him, these companies have declared impressive dividend payout to investors but I do not know why the stock market did not respond to dividend payout by Dangote Cement, Zenith Bank, among others. Although the likes of GTCO and UBA released their audited accounts after the close of trading last week, I am yet to see stock price appreciation.
“Take, for instance, Lafarge Africa last year was trading at N31 and declared N1.00 per ordinary but this year, the company declared N2.00 and trading at N24.00 per share. The dividend by these companies has not reflected in our domestic market.”
By Adedapo Adesanya
The Central Securities Clearing System (CSCS) Plc has declared the first interim dividend in its history after posting its financial results for the first half of 2026, reflecting robust earnings growth, improved operating efficiency and stronger capital market activity.
The board approved an interim dividend of N1.00 per ordinary share for the six months ended June 30, 2026, citing the company’s strong cash generation, resilient balance sheet and confidence in the sustainability of its earnings.
The interim payout represents about 56 per cent of the total dividend of N1.78 per share paid for the 2025 financial year, underscoring its strong earnings momentum while preserving financial flexibility to invest in technology, innovation and future growth.
CSCS recorded one of the strongest financial performances in its history during the review period, with total operating income rising by 92 per cent to N18.51 billion from the corresponding period of 2025.
The growth was driven by higher transaction fee income as capital market activity strengthened, continued expansion in depository services, increased collateral management revenues and stronger contributions from data and technology-enabled services. Investment income also improved as the company optimised its investment portfolio.
Despite the sharp rise in revenue, operating expenses increased by only 38 per cent, reflecting disciplined cost management and the scalability of the company’s business model.
As a result, operating profit surged by 186 per cent to N10.11 billion, while profit before tax climbed by 115 per cent to N13.21 billion. Earnings per share also rose significantly to 190.1 kobo from 109.1 kobo in the corresponding period of 2025.
The organisation also recorded improvements in operating efficiency. Its cost-to-income ratio declined to 45.4 per cent from 63.2 per cent a year earlier, while operating profit margin improved to 54.6 per cent from 36.8 per cent.
According to the company, the results demonstrate not only the benefits of stronger market activity but also the resilience of its operating model and its ability to convert revenue growth into higher profitability, improved shareholder returns and sustainable long-term value creation.
Commenting on the interim dividend, the Chairman of CSCS Plc, Mr Temi Popoola, said the board’s decision reflected confidence in the firm’s financial strength, earnings quality and long-term strategic direction.
He said the strong performance was driven not only by increased market activity but also by sustained improvements in operational efficiency, disciplined cost management and the continued diversification of revenue streams.
Mr Popoola noted that the Board remained committed to balancing shareholder returns with investments in technology, innovation, resilience and new growth opportunities that would strengthen CSCS’ position as Nigeria’s leading financial market infrastructure and one of Africa’s foremost post-trade institutions.
The chief executive of CSCS Plc, Mr Shehu Yahaya Shantali, attributed the strong performance to the resilience of the entity’s business model, the dedication of its workforce and the confidence of market participants.
He said the first-ever interim dividend demonstrated the company’s ability to translate strong earnings growth and improved operating efficiency into enhanced shareholder value.
Mr Shantali added that CSCS would continue to strengthen its core market infrastructure, invest in technology and innovation, diversify its revenue base and enhance value creation for stakeholders while supporting the development of Nigeria’s capital market.
By Aduragbemi Omiyale
The national scale long-term issuer rating of Axxela Limited has been upgraded by GCR Rating to A+(NG), just as its short-term issuer rating was affirmed with a stable outlook.
The rating firm upgraded the long-term issue rating for Axxela Funding 1 Plc’s N16.4 billion series 1 senior unsecured bond to A+(NG), while the N11.5 billion series 1 senior secured bond was lifted to A+(NG)(EL).
GCR noted in a note that the actions reflect the leading gas and power portfolio company’s robust business model, strong earnings performance, and sustained financial profile, reinforcing its ability to deliver long-term value while maintaining financial discipline.
Axxela’s recent achievements have been driven by its continued focus on responsible growth, customer satisfaction, and creating lasting value for national development.
“The ratings upgrade by GCR is a strong endorsement of Axxela’s disciplined approach to business. Beyond recognising our financial strength, it reflects the resilience of our business model and the confidence in our strategic direction.
“Over the past few years, we have continued to make significant strides across the business by expanding our natural gas infrastructure, strengthening our operational footprint, advancing our sustainability agenda, and maintaining an unwavering commitment to operational excellence and safety,” the chief executive of Axxela, Mr Moshood Olajide, commented on the development.
As the company continues to advance its long-term growth strategy, the upgraded ratings reinforce confidence in Axxela’s credit profile, financial resilience, and ability to create enduring value for investors, customers and other stakeholders.
By Adedapo Adesanya
The Ministry of Solid Minerals Development and the National Identity Management Commission (NIMC) have strengthened their partnership to deploy digital identity technology, aiming to combat illegal mining and enhance security in Nigeria’s mining sector.
Speaking while receiving the Director-General and management of NIMC on a courtesy visit to his office in Abuja, the Minister of Solid Minerals Development, Mr Dele Alake, described the commission as a critical institution in Nigeria’s development architecture, stressing that effective governance could not be achieved without a credible identity management system.
“NIMC occupies a critical position in translating policy into reality. It is pivotal to the development of any nation because governance today is driven by data, technology and credible identity systems,” he added.
He noted that inadequate identification systems had weakened enforcement efforts over the years, allowing illegal mining activities to flourish in mineral-rich communities.
“Without identification, we cannot trace or track, and insecurity will flourish. In the solid minerals sector, we need effective monitoring of both legal and illegal operations.
“A credible identity ecosystem will strengthen regulation, improve enforcement and support our efforts to sanitise the sector,” Mr Alake said.
The minister identified technology, statistics, data gathering and digital identity as critical enablers for evidence-based policymaking, improved regulatory oversight, efficient licensing, investment promotion and national development.
On her part, the DG of NIMC, Mrs Abisoye Coker-Odusote, highlighted several opportunities for collaboration between both institutions, noting that the newly enacted NIMC Act has positioned Nigeria to fully embrace a digital governance ecosystem.
She explained that deeper integration of identity management into the solid minerals sector would facilitate database integration across government institutions, enhance regulatory compliance, strengthen security and law enforcement, improve monitoring of operators, and provide stronger support for the implementation of Community Development Agreements (CDAs) in mining host communities.
Mrs Coker-Odusote added that NIMC’s upgraded digital infrastructure is capable of supporting government institutions in building reliable databases, improving transparency and delivering more efficient public services.
Both institutions said they would immediately begin implementing technology-driven initiatives under the partnership, expressing confidence that expanding access to trusted digital identities for miners and other eligible residents would enhance accountability and strengthen governance in the solid minerals sector.
