What Is an Ex-Dividend Date? Qualification Dates, Closure of Register and Payment Dates in Nigeria
Nigerian companies announce a qualification date, a closure of register and a payment date for each dividend. Here is what each date means, how T+1 settlement affects who qualifies and where the dates are published.
The ex-dividend date is the first trading day on which a purchase of a share no longer entitles the buyer to the dividend the company has just declared. In Nigeria, companies announce a qualification date, also called the record date, and the dividend is paid to whoever is on the register of members at that date. Because a trade on the Nigerian Exchange (NGX) settles one business day after it is executed, a purchase made on the qualification date itself settles too late to be on the register, so in practice the share goes ex-dividend on that day.
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Important disclaimer. This article is for educational purposes only. It is not financial advice and is not a recommendation to buy any specific share or investment product. Always do your own research and consider seeking independent financial advice before making any investment decision.
The Four Dates in a Dividend Announcement
- Declaration date: the day the board of directors announces a proposed dividend, usually alongside the company's results. A final dividend still needs shareholder approval at the annual general meeting; an interim dividend is paid on the board's authority.
- Qualification date (record date): the date on which the company's registrar takes a snapshot of the register of members. Shareholders on the register at that date receive the dividend, whoever holds the shares afterwards.
- Closure of register: a short period, typically starting on or just after the qualification date, during which the registrar does not process transfers so that the list of qualifying holders can be finalised. Trading on NGX continues during the closure; only registration is paused.
- Payment date: the day the registrar pays the dividend, usually by direct credit to the bank account on the shareholder's e-dividend mandate. It commonly falls after the annual general meeting for a final dividend.
Where the Ex-Dividend Date Fits
Nigerian company announcements usually do not state an ex-dividend date. It follows from the qualification date and the settlement cycle. A share bought on NGX is registered to the buyer at the Central Securities Clearing System (CSCS) on settlement, not on the trade date. As published by the Securities and Exchange Commission (SEC) and CSCS, the Nigerian market moved to T+1 settlement on 1 June 2026, having been on T+2 from 28 November 2025 and T+3 before that. Under T+1, a trade on the business day before the qualification date settles on the qualification date, and a trade on the qualification date settles the day after.
So the last trade date that settles in time is one business day before the qualification date, and the qualification date itself is the first day on which a buyer does not qualify. Weekends and public holidays are not business days, which is why a qualification date falling on a Monday means the last qualifying trade was on the previous Friday. Registrars and brokers can differ in how they treat trades that settle on the qualification date, so confirm the cut-off with your stockbroker for any specific announcement.
The dividend belongs to whoever is on the register at the qualification date. If you sell before that date and the trade settles before it, the buyer receives the dividend. If you sell on or after it, you keep the dividend even though you no longer own the shares when it is paid.
What Happens to the Price
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On the ex-dividend date the share no longer carries the right to the declared dividend, and market prices tend to reflect that. Whatever happens to the price on the day is the outcome of ordinary trading and of many other factors, so a dividend is not a separate sum of money added to an unchanged share price. NGX's daily price limits apply on the ex-dividend date as on any other day.
Where to Find the Dates
Listed companies file a corporate action announcement with NGX when a dividend is declared, and NGX publishes it on its website alongside the company's results. The announcement sets out the amount per share, the qualification date, the closure of register period, the payment date and, for a final dividend, the date of the annual general meeting. The company's own investor relations page and its registrar usually carry the same notice, and the dividend is also described in the annual report. Some brokers and platforms show upcoming qualification dates in their apps; the NGX announcement is the source they are drawn from.
Being on the Register Is Not the Same as Being Paid
Qualifying for a dividend puts your name on the list. Receiving it depends on the registrar holding valid bank details for you under the e-dividend mandate system. Dividends that cannot be paid because no mandate exists are held as unclaimed dividends by the registrar until you claim them. A separate article on this site explains how to update your bank details with a registrar. Withholding tax is deducted by the registrar before payment; the rate is set by law and can change, and a tax professional can explain how it applies to you.
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See How It WorksEx-Dividend Dates in Nigeria: FAQs
Is the qualification date the same as the record date?
Yes. Nigerian announcements usually say "qualification date"; "record date" is the same idea and is the term used in many other markets. Both mean the date on which the register is checked to see who receives the dividend.
I bought shares the day before the qualification date. Do I qualify?
Under T+1, a trade on the business day before the qualification date settles on the qualification date. Most registrars treat a holding settled on that date as qualifying, but practice can vary, so ask your stockbroker to confirm how the cut-off was applied for that company.
Can I still trade the shares during the closure of register?
Yes. Closure of register affects the registrar's processing of transfers on the company's register, not trading on NGX. Trades during the closure settle through CSCS in the usual way; they simply do not affect who receives the dividend already declared.
Why has the dividend not arrived on the payment date?
Common reasons are that the registrar has no e-dividend mandate for you, that the bank details on file are out of date, or that the bank has not yet credited the transfer. Check with the registrar first, quoting your registrar account number or CHN. Unpaid dividends are held as unclaimed and can be claimed later.
Does the ex-dividend date apply to bonus shares too?
The same principle applies. A bonus issue has a qualification date, and holders on the register at that date receive the bonus shares. Because the number of shares in issue increases, the price per share is adjusted after the record date in the same way as after a split.
Important disclaimer. This article is for general information and educational purposes only. It does not constitute financial advice, investment advice, or any recommendation to buy, sell, or hold any security. The value of investments can fall as well as rise. You should seek independent regulated financial advice before making any investment decision. Shares Saver does not provide financial advice.
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