Companies: Season of Dividends Declaration and Payments for Her Shareholders Worth Billions of Naira

Companies: Season of Dividends Declaration and Payments for Her Shareholders Worth Billions of Naira

By: Balami Lazarus

This piece made me recall my attempt to write the Chartered Institute of Stockbrokers (CIS) examinations years ago that I cannot remember now. I deliberately failed to continue with no reasons to give or shift blame as an escape route, which humans many do to console themselves of their failures. I (the writer) have learned never to do that.

However, no knowledge or experience is a waste for a wiseman. Hence, this work is derived from the knowledge gotten from the handouts and books I read on capital, equity, and/or stock market investments, where patience is the guiding principle as an investor taking into consideration this formula: Money > Units (Stocks) × Time + Patience = capital appreciations/dividends.

Many Nigerians are unaware of this equity/capital market. And if they do, they lack knowledge on what to do and how to invest in this market (kasuwan hanun jari).

It will shock you to know that there are so many share certificates in the hands of the citizens, amounting to thousands of units of shares worth billions of naira put together, laying fallow, not knowing what to do with them.

For I have seen many and assisted friends and relatives on what to do. Thanks for the digitalization of the market; it has made things much easier for investors and traders, including dividend payments currently taking place.

And surprisingly, there is over $190 billion in unclaimed dividends in the coffers of the federal government under the watch of the Securities and Exchange Commission (SEC), which is the regulatory body.

This large amount of money came as a result of some shareholders not knowing how to claim their dividends. While others may be due to the attitudes of procrastination.

The Nigerian Stock Exchange (NSE), now officially Nigerian Exchange Group Plc, which is run as a public liability company guided by the Companies and Allied Matters Act (CAMA), with its nomenclature as (NGX), also has her stocks traded on the exchange floor at Lagos.

I will not say much on the NGX. But be informed it is the trading floor of public companies’ stocks listed with the exchange where traders and investors can buy and sell their stocks or simply shares from Mondays to Fridays (5 times) in a week from 9am to 2pm daily.

Every year most companies hold their Annual General Meeting (AGM), informing their shareholders of the progress of their companies and whether or not to declare dividends to their shareholders depending on the strength of profits after tax (PAT) to those whose names appear on the list of the company registrars before the date of declaration.

The season of dividend declarations is most times done in April through June of each year. However, companies’ dividends vary in the sum of money paid to their shareholders depending on their units’ holdings in each company as part owners.

Dividends have added monetary value to shareholders and, by extension, improved the capacity of small- and medium-scale businesses in the economy because of the large amounts of money that have been paid into their various accounts either as individuals or as business enterprises.

Investors and capital market watchers are one group in society that is better informed on this segment of the Nigerian economy. And the investing group of citizens are making millions upon millions of naira from their investments in the market.

Take Guaranty Trust Company (GTCO) Plc, owners of Guaranty Trust Bank, as an example. Having declared a dividend of 11.67kobo per share for her shareholders. And assuming you, the reader, have a shareholding of only 1 million units. #11.67k x 1m = to #11,670,000 less 10% withholding tax (WHT), you will be credited with #10,503,000 your dividend as return on investment (RoI) on 28th April 2026 payment date.

What a profitable investment/dividend payment season.

Balami, Publisher/Columnist. 08036779290

Companies: Season of Dividends Declaration and Payments for Her Shareholders Worth Billions of Naira