Nigerian shareholders living outside Nigeria can receive dividend payments through the e-dividend system. Here is how the process works and what steps to take to ensure payments reach you.
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Nigerian listed companies pay dividends electronically through the e-dividend mandate system, administered by the Securities and Exchange Commission (SEC) Nigeria. Under this system, shareholders register their bank account details with the company's registrar. When a dividend is declared and the record date passes, the registrar processes payments directly to all registered bank accounts. Dividends are not paid by cheque in most cases — electronic registration is the standard route.
To receive dividends electronically, you must register your bank account details with each company's registrar (or through the SEC's central e-dividend mandate portal). The registration requires your CHN (Central Holder Number), your name as it appears on the share register, your bank account number, bank name, and BVN. You may also need to provide a copy of valid ID. Registration must be completed before the dividend record date for that specific dividend payment.
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This depends on the registrar and the company. Some Nigerian registrars have the technical capability to process payments to foreign bank accounts; others do not. The most common and reliable approach for diaspora investors is to: (1) receive dividends into a Nigerian bank account (local or a Nigerian bank with diaspora banking capability), and then (2) transfer funds internationally through a licensed money transfer operator or bank. This two-step approach is the most widely used by diaspora investors.
This section covers Nigerian withholding tax. Tax rules can change. Always seek qualified tax advice for your specific situation.
All Nigerian dividend payments are subject to a 10% withholding tax deducted at source before the net amount is credited to your registered account. The WHT is deducted and remitted to FIRS (Federal Inland Revenue Service) by the company on your behalf. You receive the net dividend — 90% of the gross declared amount. You do not need to take any action for the WHT to be processed. However, you may need to account for it in your home country's tax return — seek advice from a qualified tax adviser.
If you owned shares during a dividend period but did not receive payment — perhaps because your bank details were not registered or were outdated — those dividends are classified as unclaimed. Unclaimed dividends are held by the registrar and can be claimed by registering or updating your bank details. Some unclaimed dividends may eventually be transferred to the Investor Protection Fund (IPF) if not claimed within a statutory period. Contact the specific company's registrar with your CHN, identification, and bank account details to initiate a dividend recovery process.
Each NGX-listed company has an appointed registrar (such as Africa Prudential, First Registrars, DataTrust Registrars, or others). To update your bank details, contact the relevant registrar directly. You will need to provide your CHN, valid ID, your current bank account details, and complete any forms required. Some registrars allow updates via email or online portal; others require physical presence or notarised documentation for non-resident updates. Contact the specific registrar to confirm their current process.
In the current system, each company has its own registrar, and bank details may need to be registered separately with each one. The SEC's central e-dividend mandate system is designed to streamline this, but practical implementation varies. Check with each registrar for the current process.
Check the company's annual report, investor relations page, or contact the NGX directly. The registrar's contact details are typically published in dividend announcements.
Yes — dividend payment is based on share registration, not on the existence of a tax treaty. However, tax treatment in your country of residence may differ depending on whether a DTA exists. Seek qualified tax advice.
If your shares are registered in the CSCS in your name before the record date but your bank details are not registered, the dividend is declared as unclaimed. It is held by the registrar and can be claimed later by providing updated bank details.
Important disclaimer
This article is for general information and educational purposes only. It does not constitute financial advice, investment advice, or tax advice. Tax treatment depends on your individual circumstances. Dividend amounts are not guaranteed. Always seek independent qualified financial and tax advice before making any investment decision. Shares Saver does not provide financial or tax advice.
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