60 of 136 NGX-listed firms skipped dividends for 3+ years in 2021-2025, Premium Times finds
At least 60 of about 136 companies listed on the Nigerian Exchange didn't pay dividends for three or more years in the five-year period from 2021 to 2025, a Premium Times investigation reveals. This represents 44% of listed companies, up from 33% (51 of 156) in the previous five-year period to 2021. The analysis shows loss-making remains the top reason, with only nine consistently profitable firms among non-dividend payers. The FX crisis from mid-2023 to early 2024 exacerbated losses for import-dependent businesses like Nigerian Breweries and Nestle, turning retained earnings negative. Regulatory factors also played a role, including the Central Bank of Nigeria's 2025 order blocking banks with forbearance loans from dividend payouts—affecting giants like Access Holdings and UBA until balance sheets are cleared. Many companies, particularly growth-focused firms on NGX's Growth Board, strategically reinvest profits instead of paying dividends, following global tech models like Amazon or Tesla. Newer listings (post-2023) and ETFs were excluded from the assessment as too young for dividend history evaluation. While dividend absence isn't inherently negative or illegal under CAMA 2020, investors should scrutinize individual company reasons—whether loss recovery, regulatory constraints, or deliberate growth strategy—before making investment decisions.