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The short answer
Dividends on NGX-listed shares are paid by each company's registrar, in naira, into the Nigerian bank account on your e-dividend mandate; living abroad does not change that. Withholding tax of 10% is deducted before payment, and for most individuals that is treated as the final Nigerian tax, according to Bamboo's June 2026 guide. If you have no mandate, the dividend sits unclaimed until you register one through your registrar, your bank or the SEC's e-dividend portal.
If you own shares in Nigerian companies, from a portfolio you built before moving or shares you bought from abroad, the dividend does not come to you through the stock exchange or your broker's app by default. It is paid by the company's registrar, and it goes where your mandate tells it to go. This article explains the chain, what to set up and what is deducted on the way.
Who actually pays the dividend
Every listed company appoints a registrar, a firm that keeps its register of shareholders and pays dividends. BusinessDay counted about 18 registrars serving more than 100 listed companies in 2022. When a company declares a dividend, the registrar works out what each holder is owed and pays it electronically to the bank account registered against that holder's name.
Your shares are recorded at the Central Securities Clearing System (CSCS) under your Clearing House Number (CHN), which your stockbroker opens for you. CSCS's own FAQs say dividend and bonus claims go to the registrars, not to CSCS. So there are three records that must agree: your CSCS account, the registrar's register, and your bank account details.
The e-dividend mandate
An e-dividend mandate is the instruction that links your shareholding to a bank account. Without it, the registrar has nowhere to send the money and the dividend becomes "unclaimed". The SEC estimated unclaimed dividends at about ₦177 billion at December 2021 (BusinessDay), and the Finance Act 2020 allows the federal government to borrow dividends left unclaimed for six years or more.
In June 2024 the SEC revamped its e-Dividend Mandate Management System. According to its circular, you can:
- check whether you appear on the non-mandated list at eportal.sec.gov.ng/non-mandated;
- submit a mandate yourself through the NIBSS self-service portal linked from the circular; or
- approach your registrar or your bank to mandate the account and collect past unclaimed dividends.
The mandate form typically asks for your name, BVN, bank account number and contact details, and is confirmed by your bank (BusinessDay). The SEC circular does not state fees or timelines, so ask the registrar how long confirmation takes.
Steps from abroad
- Find your CHN and the list of companies you hold. If you have lost track, CSCS offers a global search at its Lagos or Abuja office, or through your broker; outside Lagos and Abuja it accepts notarised ID sent through the broker.
- Check the SEC non-mandated list for your name.
- Make sure the name on your bank account, your BVN and your shareholder records match. A mismatch is the usual reason a mandate is rejected.
- Submit the mandate through the NIBSS self-service portal or ask your bank to process it.
- Ask each registrar to release any unclaimed past dividends to the mandated account.
Which account the money goes to
Dividends on Nigerian shares are paid in naira to a Nigerian bank account. We found no SEC or registrar rule allowing payment straight to a foreign account. That means you need a Nigerian naira account that is active, linked to your BVN and in your exact name.
If you are a Nigerian living abroad, the CBN's framework for Non-Resident Nigerian Investment Accounts (NRNIA), effective 1 January 2025, is designed for investing in Nigerian markets. A Mondaq summary of the framework says naira balances in an NRNIA can be repatriated "upon evidence of prior foreign inflows and related investment proceeds". Foreign investors who brought money in through a bank and received a Certificate of Capital Importation (CCI) can use that certificate to repatriate dividends through an authorised dealer, with tax clearance (Mondaq, September 2024). Shares bought years ago with naira earned in Nigeria usually have no CCI, so dividends stay as naira until you convert them. See foreign portfolio investor versus resident route.
Tax taken before you are paid
Nigerian dividends carry 10% withholding tax, deducted by the company before payment. Bamboo's guide of 26 June 2026 says that for most individuals this is treated as a final tax, and that a tax treaty may reduce the rate, "commonly to 7.5%". Whether a treaty applies depends on your country of residence and the paperwork the registrar accepts; Nigeria's treaty list includes the UK, Canada, South Africa, Spain and Italy among others, according to the NGEX guide hosted by NiDCOM.
Here is an example. A company declares ₦2.50 a share and you hold 4,000 shares:
| Item | Calculation | Amount |
|---|---|---|
| Gross dividend | 4,000 × ₦2.50 | ₦10,000 |
| Withholding tax at 10% | ₦10,000 × 10% | ₦1,000 |
| Paid to your mandated account | ₦10,000 − ₦1,000 | ₦9,000 |
Where you live, the dividend may also be taxable. Many countries give a credit for foreign tax withheld, but rules differ, so check your local tax authority's guidance. This is information, not tax advice.
Where Pryme fits
A Pryme account gives you naira account details alongside dollar, pound and euro balances, held for naira by a licensed Nigerian microfinance bank. Before using it for a mandate, confirm with the registrar that the account and BVN name match its requirements. Once dividends land, Swap shows the rate and fee before you approve, and verifiable statements help when you need to evidence income. Related: transferring inherited shares and how the Nigerian stock exchange works.
Questions people ask
Can I receive Nigerian dividends in a foreign bank account?
We found no rule letting registrars pay abroad directly. Dividends are paid in naira to the Nigerian account on your e-dividend mandate.
How do I check unclaimed dividends from abroad?
Search the SEC's non-mandated list at eportal.sec.gov.ng/non-mandated, then contact the registrar or use the NIBSS self-service mandate portal.
How much tax is deducted from Nigerian dividends?
10% withholding tax before payment. A treaty may reduce it for residents of some countries.
Do I need a CHN to get dividends?
Your CHN identifies your CSCS account. The registrar pays against its register and your mandate, so keep both in the same name.
Sources
- SEC Nigeria: Revamped E-Dividend Mandate Management System Portal (2 Jul 2024) · accessed Oct 2026
- CSCS: FAQs · accessed Oct 2026
- BusinessDay: Steps for shareholders to get unclaimed dividends (7 Dec 2022) · accessed Oct 2026
- Learn With Bamboo: Tax on Nigerian stocks (26 Jun 2026) · accessed Oct 2026
- Mondaq: CBN framework for Non-Resident Nigerian Ordinary and Investment Accounts (22 May 2025) · accessed Oct 2026
- NGEX Diaspora Guide to Nigeria Tax Reforms 2026 (NiDCOM site, Jan 2026) · 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.