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Understanding Dividends and How to Receive Them in Nigeria - Henlus - 08-29-2025
1. What is a Dividend?
A dividend is a portion of a company’s profits distributed to its shareholders as a reward for investing. It is different from capital gains (increase in stock price). Dividends are usually paid quarterly or annually, depending on company policy.
2. Who Pays Dividends in Nigeria?
In Nigeria, dividends are paid by the Registrar of each company you own shares in, not by your stockbroker (e.g., not Bamboo, Meristem, etc.).
3. How to Receive Dividends Directly in Your Bank Account
To receive dividends directly into your bank account, you must complete and submit the E-Dividend Mandate Form.
Steps:
Step 1: Get the E-Dividend Mandate Form
You can obtain the form from your bank or download it from the SEC website (they both provide a universal form).
You can also download it from the Registrar’s website of the company you bought shares in.
Each company has its own Registrar. For example:
Africa Prudential Registrars Plc handles BUA Cement & UBA.
Datamax Registrars Limited handles GTCO.
Coronation Registrars Limited handles Dangote Cement.
To find the Registrar for your company’s shares, simply search online.
Step 2: Fill in the Form
Provide your full name (as it appears on CSCS and BVN records).
Enter your CSCS/CHN number.
Provide your bank name, account number, and BVN.
Append your signature.
Important Notes:
Every Nigerian stockholder has a Central Securities Clearing System (CSCS) account. Think of it as a BVN for stocks.
This account is created automatically when you first buy stocks through a licensed stockbroker.
Your CSCS number links all your shares across different brokers and registrars.
Example: If you bought BUA Cement and UBA via Meristem, and GTCO or Dangote Cement via Bamboo, all will still be tied to your single CSCS account.
Step 3: Submit the Form
Submit the completed form at your bank branch (they process it free), OR
Submit it directly to the Registrar of the company whose shares you hold.
Once processed, all future dividends will be credited electronically to your bank account.
4. Why the E-Dividend Form is Important
It solves the problem of unclaimed dividends from old paper warrants.
Even if you bought shares many years ago and never received dividends, this process still works. Once linked, you won’t need to chase dividend cheques or deal with expired warrants.
FAQs
Q1: I received dividends without filling the E-Dividend form. How is that possible?
Before 2015/16, dividends were paid by cheque (dividend warrants). Some people still get paid that way, but many dividends remain unclaimed because cheques expire, addresses change, or details don’t match.
Some registrars automatically linked bank accounts once you provided your bank details during stock purchase.
Some stock apps (e.g., Chaka, Bamboo) collect shareholders’ bank details upfront, so once dividends are paid, they are automatically credited.
However, the safest and most reliable way is to fill the E-Dividend Mandate Form.
Q2: If I bought stock in GTBank, Dangote and Presco, should I download separate E-Dividend forms for each?
Not necessarily. You can use the Consolidated E-Dividend Mandate Portal (e-DMMS) on www.sec.gov.ng. Download the form, submit it through your bank, and it will link all your registrars and companies at once.
I hope this help someone.