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The short answer
Dividends on Nigerian Exchange shares are paid in naira, normally by e-dividend into a Nigerian bank account linked to your shareholding through a mandate with the registrar, after 10% withholding tax. To get the money to the UK, you convert and transfer it from that account. If you are UK resident, the dividends are normally reportable in the UK, with credit for the Nigerian tax.
How Nigerian dividends are paid
When a listed Nigerian company declares a dividend, its registrar pays shareholders on the register. Payment is in naira. Since the SEC's push for electronic payment, the standard route is e-dividend: the registrar pays directly into the bank account named on your e-dividend mandate. Shareholders without a valid mandate end up on the SEC's non-mandated list, and their dividends sit unclaimed with the registrar.
The SEC's circular on its revamped E-Dividend Mandate Management System (published 2 July 2024) says shareholders can submit a mandate through the NIBSS self-service portal, check the non-mandated list on the SEC e-portal, or approach their registrar or bank, both to collect unclaimed dividends and to receive future dividends electronically.
Steps from the UK
- Find out which registrar handles each company you hold. Your stockbroker or the company's annual report will say.
- Check the SEC non-mandated list for your name to see whether dividends are waiting.
- Submit or update an e-dividend mandate, naming a Nigerian bank account in your own name that you can run from the UK. The account needs your BVN; Nigerians abroad can obtain one through the diaspora route (see the Nigeria library on the NRBVN).
- Update your address and contact details with the registrar and broker so notices reach you.
- If you have lost track of holdings, CSCS says you can request a global search of brokerages and registrars at its Lagos or Abuja office with valid ID, or through your broker; a stock position statement requires biometric capture at a CSCS office, so plan that for a visit home.
Tax in Nigeria
Dividends on Nigerian shares are subject to 10% withholding tax, deducted before payment; both the NiDCOM-hosted NGEX diaspora tax guide and Bamboo's investor guide state this, and Bamboo says that for most individuals the deduction is treated as a final tax. The 1987 UK-Nigeria treaty caps Nigerian tax on dividends to UK residents at 12.5% for companies holding 10% or more and 15% for others (Article 10), so the 10% rate is already below the treaty cap.
Example (labelled)
Example only. You hold 10,000 shares and the company declares ₦2.50 per share: gross ₦25,000. Withholding tax of 10% is ₦2,500, so ₦22,500 is paid into your mandated account.
Tax in the UK
GOV.UK says UK residents normally pay tax on foreign income, including foreign dividends, usually reported through Self Assessment, and that relief may be claimed where income is taxed in more than one country. Under the treaty's credit article (Article 22), the Nigerian withholding tax can generally be set against the UK tax on the same dividend. Keep the dividend advice showing gross amount and tax deducted; that is your evidence.
Moving dividends to the UK
Once dividends are in your naira account, you convert and send them like any other naira savings. Investors who brought foreign currency into Nigeria through an authorised dealer and obtained a Certificate of Capital Importation have a separate repatriation route: Mondaq's guide says the CCI allows dividends to be repatriated in convertible currency through an authorised dealer, with tax clearance needed for dividend remittances. If you bought your shares with naira already in Nigeria, you will not have a CCI, and the ordinary routes apply; see moving naira out of Nigeria legally.
Small dividends are often cheaper to leave in naira for costs at home, or to reinvest, than to convert one by one. Batching them into one conversion a year reduces fees.
If you sell the shares instead
Some shareholders abroad decide to sell rather than keep chasing small dividends. Sale proceeds also arrive in naira, through your stockbroker, into your bank account. Bamboo's guide says that from 1 January 2026, under the Nigeria Tax Act 2025, gains on shares are taxed at personal income tax rates, with an exemption where sale proceeds are no more than ₦150 million and gains no more than ₦10 million in 12 months, and with the cost base for shares held before 2026 reset to the higher of cost or the 31 December 2025 closing price. A UK resident may also need to report the gain in the UK. The Nigeria library explains how selling works and when the money arrives.
Keep the paperwork
- Dividend advices showing the gross dividend, tax deducted and net paid.
- Your e-dividend mandate confirmation.
- Broker contract notes for any purchase or sale.
- The Nigerian bank statement showing payments arriving, which also answers a UK bank's source-of-funds questions.
Where Pryme fits
A Pryme naira account in your name can be the account on your e-dividend mandate, with GBP alongside it. When you choose, Swap the naira to pounds, seeing the rate and fee before you approve. Naira deposits are held by a licensed Nigerian microfinance bank; outside Nigeria, Pryme works through regulated partners. See the multicurrency account.
Questions people ask
Can I receive Nigerian dividends in my UK bank account?
Registrars pay in naira into a Nigerian bank account on your e-dividend mandate. You then convert and move the money to the UK yourself.
How do I check for unclaimed dividends from the UK?
Search the SEC non-mandated list online, then submit an e-dividend mandate through the NIBSS self-service portal or your registrar.
What tax is taken from Nigerian dividends?
Withholding tax of 10% is deducted before payment. For most individuals it is treated as a final tax in Nigeria.
Do I declare Nigerian dividends to HMRC?
If you are UK resident, GOV.UK says foreign dividends are normally taxable, usually through Self Assessment, with relief possible for Nigerian tax paid.
Sources
- SEC Nigeria: Revamped E-Dividend Mandate Management System portal (2 Jul 2024) · accessed Oct 2026
- Learn With Bamboo: Tax on Nigerian stocks (26 Jun 2026) · accessed Oct 2026
- NiDCOM / NGEX: Diaspora guide to Nigeria's tax reforms 2026 · accessed Oct 2026
- GOV.UK: 1987 UK-Nigeria double taxation agreement (updated 30 Sep 2026) · accessed Oct 2026
- GOV.UK: Tax on foreign income (updated 1 Oct 2026) · accessed Oct 2026
- CSCS: Frequently asked questions · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.