One-Third of NGX Listed Firms Haven’t Paid Dividends in Five Years

AFRICAN STOCKS AND FINANCESeptember 1, 2025 at 10:54 AM UTC

TLDR

Forty-five of the 146 companies listed on the Nigerian Exchange Limited (NGX) have not paid dividends in at least five years
The non-dividend firms span multiple sectors, including consumer goods, insurance, healthcare, ICT, and industrial goods
Analysts say the trend signals weak capital discipline and limited cash flow visibility across many listed firms

Forty-five of the 146 companies listed on the Nigerian Exchange Limited (NGX) have not paid dividends in at least five years, leaving shareholders with no cash returns despite some sharp share price rallies.

The non-dividend firms span multiple sectors, including consumer goods, insurance, healthcare, ICT, and industrial goods. Companies such as DN Tyre & Rubber, International Breweries, Royal Exchange, Omatek Ventures, and NCR Nigeria feature prominently. Some, like Secure Electronics and Daar Communications, have never paid dividends since listing.

Financial disclosures show that many of these firms remain unprofitable, while others report inconsistent or weak earnings that cannot sustain payouts. International Breweries, for example, posted a N113 billion loss in 2023 but returned to profit in H1 2025. SCOA reported N342 million profit in H1 2025, surpassing 2024 full-year earnings, but still withheld dividends.

Despite this drought, some “silent stocks” such as SCOA, FTN Cocoa, and Ellah Lakes have gained more than 100% year-to-date, raising questions about the sustainability of such rallies without dividend support.

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Key Takeaways

The persistence of non-dividend stocks on the NGX highlights a structural gap between market performance and shareholder value. Dividends remain one of the few reliable income streams for Nigerian retail investors, yet one in three companies has failed to reward shareholders in years. For some, losses explain the drought. FTN Cocoa posted combined losses of more than N20 billion over 2023–24, and Ellah Lakes has yet to break its loss-making streak. But others, like SCOA and John Holt, have reported occasional profits without payouts, frustrating investors who remain locked in “dead money.” Analysts say the trend signals weak capital discipline and limited cash flow visibility across many listed firms. Price rallies in loss-making stocks highlight speculative trading rather than fundamental strength. For long-term investors, the lesson is that consistent dividend history remains a stronger marker of sustainability than short-term stock gains.

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