A staggering 45 of the 146 companies listed on the Nigerian Exchange (NGX)—nearly one in three—have failed to pay dividends for at least five years, leaving investors with “dead money” and no income stream, according to a stock analyst. These non-paying firms span multiple sectors, including consumer goods, insurance, healthcare, ICT, and industrial goods, raising concerns about their financial health and shareholder value.
Among the silent stocks are consumer goods firms like DN Tyre & Rubber, Golden Guinea Breweries, and International Breweries; insurance companies such as Royal Exchange and Staco Insurance; healthcare players like Ekocorp and Pharma-Deko; and ICT firms including Omatek Ventures and NCR Nigeria. Thomas Wyatt Nigeria has not paid dividends since 2007, and Secure Electronics has been silent since 2008. John Udoh, a broker at Arthur Steven Asset Management, told Nairametrics, “Investors must examine why these companies aren’t paying dividends, as it often signals ongoing losses.”
Financial reviews reveal that many of these firms face persistent unprofitability. FTN Cocoa, for instance, reported losses of N10.65 billion in 2023 and N9.53 billion in 2024, though H1 2025 losses shrank by 89% to N1.1 billion. International Breweries, after a N113 billion loss in 2023, posted a N29.4 billion profit in H1 2025, sparking hopes of future dividends. SCOA, with profits in three of the last five years, including N342 million in H1 2025, saw a 167% year-to-date stock surge but still withheld payouts. Ellah Lakes and others with triple-digit gains also remain unprofitable, highlighting a gap between price rallies and shareholder rewards.
Analysts warn that price appreciation without consistent profits or dividends offers hollow returns, challenging the sustainability of such gains. Nigeria’s economic landscape, with a 67.12% rise in capital importation to $5.64 billion in Q1 2025 and a 39.98% year-to-date NGX gain, underscores investor appetite, but naira volatility (N1,560/$1 in the parallel market) and 21.88% inflation in July emphasize the need for firms to prioritize profitability to restore confidence.
