The Business NG - August 27, 2025

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Dividend Drought Leaves Investors in Limbo

By BusinessNG Editorial Desk

Investors on the Nigerian Exchange (NGX) are facing a growing challenge as a significant number of listed companies fail to pay dividends, despite committing billions of naira to the market. Out of 146 companies, nearly one in three has gone five consecutive years without distributing cash payouts, leaving shareholders with what brokers describe as “dead money.”

Dividends have traditionally been the most reliable way for investors to earn steady income from their stock holdings. They also signal a company’s profitability and its commitment to rewarding owners. Yet, for many investors who have poured substantial sums into the market with the expectation of consistent returns, the last five years have been marked by disappointment and missed opportunities.

The dividend drought spans multiple sectors, including consumer goods, insurance, healthcare, industrials, and ICT. With capital locked and returns unrealized, shareholders are calling for greater transparency, accountability, and a renewed focus on shareholder value to restore confidence in the Nigerian capital market.