SEC Reports N1.1trn Dividend Boom As Confidence Grows In Nigeria’s Capital Market

In a year marked by renewed investor optimism, listed companies on the Nigerian Exchange Limited (NGX) declared dividends amounting to N1.1 trillion in 2024, according to the Securities and Exchange Commission (SEC).

Out of this, N1 trillion has already been paid to shareholders — a signal of healthy corporate earnings and growing investor confidence in the Nigerian capital market.

The Director-General of the SEC, Dr. Emomotimi Agama, noted in a recent statement that the payout reflects improved returns for investors and growing trust in the capital market’s performance. Alongside these dividends, capital formation in the Nigerian market also saw strong momentum. Between January and December 2024, the SEC approved new issuances totaling N3.68 trillion. This included N59.82 billion raised through fixed-income instruments and a remarkable N3.62 trillion raised from equities — an indication of robust activity in the equity market segment.

That momentum appears to be continuing into 2025. From January to April alone, the commission approved N446.38 billion in new capital issues, with N265.90 billion coming from fixed income instruments and N180.48 billion through equities. These numbers point to sustained investor interest and confidence from issuers seeking to raise capital.

Strategic business combinations and restructuring also shaped the market landscape. In 2024, the commission approved 11 mergers and acquisitions (M&As) with a combined value of N320.36 billion. One of the most prominent was the acquisition of a 58.02 percent stake in Guinness Nigeria Plc by N Seven Nigeria Ltd., a deal valued at over N103.7 billion. Other notable corporate actions included a N105 billion scheme of arrangement involving Flour Mills of Nigeria Plc, as well as a share capital restructuring exercise by Transnational Corporation Plc, which executed a one-for-four share consolidation worth N5.08 billion.

So far in 2025, the SEC has approved three major transactions — two takeovers and one corporate restructuring — valued at a total of N38.53 billion. While no formal mergers have been recorded yet this year, the commission said the pace of market activity remains steady, with continued interest in strategic realignments across various sectors.

The growth is not limited to listed equities and M&As. Collective investment schemes have continued to expand. As of the fourth quarter of 2024, Nigeria had 184 registered mutual funds, with a combined net asset value of N3.84 trillion. This development signals a deepening retail and institutional interest in structured investment products, adding further depth to the financial ecosystem.

Taken together, these indicators point to a maturing Nigerian capital market that is gradually regaining the trust of investors while creating more opportunities for issuers, fund managers, and shareholders alike. The SEC’s proactive stance on regulatory approvals and corporate transactions continues to play a pivotal role in reinforcing the integrity and attractiveness of the market.