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The short answer
Dividends on Nigerian shares are declared and paid in naira by the company's registrar, normally to the Nigerian bank account on your e-dividend mandate, so for most US-based Nigerians they land in Nigeria first and you convert and wire them yourself. Investors who brought foreign currency in through an authorised dealer and hold a Certificate of Capital Importation (CCI) can have dividends repatriated in foreign currency through that dealer (Mondaq, 2024).
Many Nigerians in the US still hold shares bought before they left: bank stocks, a cement company, shares from a public offer years ago. Dividends keep coming, and the question is whether they can be paid straight into a Chase or Bank of America account, or whether they must land in Nigeria. The answer depends mainly on how you bought the shares.
Two kinds of shareholder
| How you bought | Where dividends go | Getting them to the US |
|---|---|---|
| With naira, through a Nigerian stockbroker | The Nigerian bank account on your e-dividend mandate with the registrar | You convert and wire them yourself |
| With foreign currency brought in through an authorised dealer bank, with a CCI | Through the authorised dealer, which can repatriate in convertible currency | The dealer remits abroad, subject to its documents |
Most diaspora holdings are the first kind. A CCI is issued by the authorised dealer (usually a commercial bank) on the CBN's behalf within 24 hours of the inflow, and it is what allows dividends, interest and sale proceeds to be repatriated in convertible currency; the same Mondaq article notes that tax clearance is needed for dividend remittance. Shares bought with naira already in Nigeria do not come with a CCI.
Can the registrar pay a US account directly?
We could not find a rule, on any page we opened, that lets a registrar pay naira dividends into a foreign bank account. In practice e-dividend mandates are set up against Nigerian bank accounts. If you want to try, ask your registrar in writing whether it accepts a foreign account and in which currency it would pay. Do not change a mandate on the strength of a phone call; registrars' own pages and forms are the safe route.
If you have lost track of past dividends, the process differs; see recovering unclaimed Nigerian dividends from the US.
Tax in Nigeria
Nigerian companies withhold tax on dividends before paying them. NiDCOM's NGEX diaspora guide to the 2026 tax reforms gives a 10% withholding tax on dividends, and says a non-resident is taxed in Nigeria only on Nigerian-source income. The net amount reaching your account is after that deduction; the dividend advice or registrar statement shows the gross, the tax and the net. Keep it.
Tax and reporting in the US
- A US tax resident reports worldwide income, including Nigerian dividends, in dollars.
- Schedule B is required if your taxable interest or ordinary dividends exceed $1,500, or if you have a foreign account; part III asks about foreign accounts even if you are not required to file an FBAR (IRS instructions, reviewed April 2026).
- If your Nigerian bank and brokerage accounts together exceed $10,000 at any time in the year, an FBAR filing applies (IRS).
Nigerian tax withheld may be relevant to a US foreign tax credit; see Nigerian dividends and the foreign tax credit. This is information, not advice.
Worked example
Illustrative figures. You hold 20,000 shares and the company declares ₦2.50 a share. Gross dividend ₦50,000; withholding at 10% is ₦5,000; net ₦45,000 lands in your Nigerian account. Converting ₦45,000 on its own and wiring it would cost more in fixed charges than it is worth. Most holders let small dividends build up in naira and convert once or twice a year. Under the CBN FX Manual effective 1 June 2026, self-funded domiciliary accounts can send up to USD 10,000 a day abroad without Form A (Pavestones, Mondaq).
If you sell the shares
Sale proceeds follow the same path as dividends. Your Nigerian stockbroker sells on the exchange and pays the naira proceeds, after its commission and other charges, into your Nigerian account. You then decide whether to keep them in naira, reinvest or convert and wire. Ask the broker for the contract note for each sale; it shows the price, the number of shares and every charge, which is what a US tax preparer needs to work out any gain. See reporting a sale of Nigerian shares in the US.
What to check first
- Which registrar handles each company you hold, and which bank account is on your mandate.
- That the mandate account is in your own name and still active.
- That your address, phone and email with each registrar are current, so notices reach you.
- Whether any of your holdings came with a CCI, which changes how dividends can leave.
For holding shares from abroad more generally, see investing in NGX stocks while living in the US.
Where Pryme fits
A Pryme Personal Account can be opened from the US and gives you a naira account in your own name that you run from abroad, which you can use as the bank account for dividend credits if your registrar accepts it. Dividends then build up as naira, and Swap converts them to dollars only when you approve the rate and fee shown.
Questions people ask
Can Nigerian dividends be paid into my US bank account?
Registrars normally pay naira dividends to the Nigerian account on your e-dividend mandate. We found no rule allowing payment to a foreign account; ask your registrar in writing.
What is a CCI and do I need one?
A Certificate of Capital Importation is issued by an authorised dealer when foreign currency is brought in to invest. It lets dividends be repatriated in convertible currency. Shares bought with naira in Nigeria do not have one.
How much tax is deducted from Nigerian dividends?
NiDCOM's NGEX diaspora guide gives a 10% withholding tax on dividends. The dividend advice shows the amount deducted.
Do I report Nigerian dividends to the IRS?
A US tax resident reports worldwide income, including foreign dividends. Schedule B applies above $1,500 of ordinary dividends or if you have a foreign account.
Sources
- Mondaq: How to successfully repatriate capital and profits in Nigeria (19 Sep 2024) · accessed Oct 2026
- NiDCOM / NGEX: Diaspora guide to Nigeria's tax reforms 2026 (PDF) · accessed Oct 2026
- IRS: Instructions for Schedule B (Form 1040) (reviewed 30 Apr 2026) · accessed Oct 2026
- IRS: Report of Foreign Bank and Financial Accounts (FBAR) (reviewed 30 Jul 2026) · accessed Oct 2026
- Mondaq (Pavestones): Key regulatory update in Nigeria, the CBN Foreign Exchange Manual 2026 (24 Jun 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.