Trust & Transparency
When an NGX-listed company declares a dividend, registered shareholders receive a payment based on the number of shares they hold on the record date. Here is the complete journey — from board decision to your bank account.
This page is educational only. Shares Saver does not provide tax or investment advice. Dividends are not guaranteed. Consult a qualified adviser for your specific situation.
The company's board of directors reviews the financial results and proposes a dividend per share (e.g., ₦0.50 per share). This proposal is announced to the market via the NGX.
For final dividends, shareholders vote to approve (or modify) the board's proposal at the Annual General Meeting. Interim dividends may not require shareholder approval.
The company announces a record date — the closing date of the shareholder register. Only shareholders whose names appear in the register on this date are entitled to the dividend.
The company's registrar generates a list of all shareholders as of the record date, including the number of shares each holds. This determines who receives what amount.
The 10% withholding tax on dividend income in Nigeria is deducted from the gross dividend. The net amount is what shareholders actually receive.
The registrar distributes the net dividend directly to shareholders' bank accounts registered in the e-dividend system. Payments are typically made within a few weeks of the record date.
The e-dividend system is the SEC and NGX initiative that mandates all Nigerian dividend payments to be made directly to shareholders' bank accounts — eliminating paper dividend warrants (cheques). To receive e-dividends, your bank account details must be registered with the registrar of each company in your portfolio.
Unclaimed dividends (where bank details are not registered) are held by the registrar and can be claimed by the shareholder at any time by completing a bank mandate form with the registrar.
Dividends from NGX-listed companies are paid directly to your registered bank account via the e-dividend system, managed by the company's registrar. You must ensure your bank account is registered with the registrar to receive e-dividend payments.
The record date is the cut-off date on which you must be a registered shareholder to be entitled to receive a declared dividend. If you hold shares on the record date, you will receive the dividend regardless of what happens to your shareholding after that date.
Yes. Dividend payments in Nigeria are subject to 10% withholding tax (WHT), which is deducted at source before you receive the payment. Shares Saver does not provide tax advice — consult a qualified adviser for your specific tax situation.
If your bank account is not registered with the company's registrar via the e-dividend system, your dividend may be held in an unclaimed dividend account. You should ensure your bank details are registered with each company's registrar to avoid dividend uncollected situations.
When your shares are registered in your name, you are entitled to dividends as a direct shareholder.