Shareholders of some multinational companies in Nigeria are bracing for another year of zero dividends following foreign-exchange induced financial losses analysts say could take years to fix.
Accumulated losses of multinational companies listed on the Nigerian Exchange (NGX) surged to N819 billion at the end of 2024, a sharp rise from N247.5 billion the year before. This marks an additional N571.5 billion in losses within the year, and with some firms yet to release their full-year results, the final figure could climb even higher.
The companies under review are MTN Nigeria, Nigerian Breweries, International Breweries, PZ Cussons Nigeria, Cadbury Nigeria, Nestle Nigeria, AXA Mansard, TotalEnergies Marketing Nigeria, Unilever Nigeria, Beta Glass, and Lafarge Africa.
This mounting financial strain has significantly dampened shareholder expectations for dividend payments. Dividend distributions, a key form of profit repatriation for foreign majority shareholders, now appear increasingly unlikely for many of these firms. This is a reality that many shareholders have come to terms with.
Speaking about shareholders’ expectations, Boniface Okezie, the president of the Progressive Shareholders Association noted,
“There is hope for the future, but I do not expect any dividends this year. Given the current situation, shareholders should not expect much.”
The shareholders have high hopes for the companies.
Okezie noted, “We urge these companies to strengthen their operations and return to profitability to remain competitive and reward shareholders. At least in 2026, there should be no more excuses.”
Historical perspective: How often has this happened?
Although five of these companies paid dividends in 2024, it is highly unlikely that this number will increase in 2025, according to analysts who spoke to BusinessDay..
This is the first time in the 21st century that such a large number of multinationals have simultaneously paused dividend payments. Historically, these companies have maintained consistent payouts, making this development a major shift. At no point in the 21st century have Nigeria’s consumer goods giants paused their dividend payments at the same time.
Except for International Breweries that failed to pay any dividends since 2017, all the listed multinationals consistently paid dividends since 2013.
In 2023, all major multinationals—except International Breweries—distributed approximately N809 billion in dividends. However, by 2024, this figure had plummeted to just N47.3 billion as companies struggled under the weight of foreign exchange (FX) losses and broader macroeconomic challenges.
Financial Breakdown: Firms in the Red
Among the hardest-hit companies is MTN Nigeria, which recorded the highest retained losses at N607.5 billion at the end of 2024, driven by a net loss of N400.4 billion for the year. Nestlé Nigeria followed with retained losses of N243.2 billion, sinking deeper from a N78.6 billion loss reported at the end of 2023 and constraining its ability to pay dividends.
International Breweries also saw its retained losses rise to N241.1 billion by Q3 2024. However, the firm managed to strengthen its shareholders’ funds to N444 billion through a N516 billion rights issue. Similarly, Nigerian Breweries reported retained losses of N169.8 billion by the end of 2024, though its net assets returned to positive territory due to a N548.7 billion capital raise.
Other multinationals facing accumulated losses include; PZ Cussons with N40.4 billion and Cadbury Nigeria with N30.2 billion.
Not all multinationals are struggling. Some firms remain profitable and are likely to sustain dividend payments: AXA Mansard with N26.2 billion net profit and retained earnings at N34.2 billion. Unilever Nigeria with retained earnings at N26.2 billion. Beta Glass had a N14 billion net profit and retained earnings at N62.1 billion at the end of FY 2024. TotalEnergies Marketing generated a net profit of N27.8 billion with its retained earnings at N75.2 billion. Lafarge Africa’s net profit hit N100 billion with its retained earnings at N272.7 billion.
Investor Reaction and Market Performance
For investors who depend on dividend income, the potential for a prolonged suspension is particularly concerning. However, market sentiment remains mixed. For example, MTN Nigeria experienced a 32 percent surge in its share price in 2025, buoyed by optimism around tariff increases and strategies to reduce FX liabilities. Meanwhile, rallying sentiment is evident in other stocks: Nigerian Breweries appreciated by 8.75 percent year-to-date, Cadbury rose by 22.3 percent this year, and PZ Cussons jumped by 45.7 percent. Nestlé Nigeria is up by 11 percent, however the low trading volume among these stocks signals tepid investor confidence.
When will dividend payments resume?
Given the scale of accumulated losses, analysts predict it could take at least two years before companies resume normal dividend payments.
Samuel Oyekanmi, a Research Associate at Norrenberger, noted: “By the end of 2025, we may start seeing some of these companies pay dividends. However, a full return to pre-2024 levels is more likely by the end of 2026.”
MTN Nigeria’s CEO, Karl Toriola, reinforced this outlook, stating that the company aims to clear all accumulated losses by the second half of H2 2026.
Abdulrauf Bello, a portfolio manager at Cowrywise, suggested that firms may explore share capital reconstruction to accelerate balance sheet recovery.
“If a company has ₦300 billion in retained losses and earns only ₦20 billion annually, it would take 10 years to break even—an unrealistic timeline for dividend payments. Instead, they should assess their share premium to offset retained losses.”
Despite the current financial turmoil, a return to stability is possible. However, analysts caution that even as profits rebound, dividend payments may not reach 2023 levels for at least two years. For now, investors must brace for a prolonged dividend drought, while companies focus on rebuilding their balance sheets and regaining financial stability.(BusinessDay)
