Best Dividend-Paying Stocks on the Nigerian Exchange in 2025

Introduction

In Nigeria today, many investors are no longer chasing “hot stocks” for quick gains. Instead, they want something safer, more reliable — dividends. Dividends are like a thank-you gift from companies to shareholders, paid out from profits. Unlike share prices that move up and down with market conditions, dividends put actual cash in your pocket.

And in 2025, with inflation still stubbornly high see: How Inflation in Nigeria Impacts Stock Market Returns, Nigerians are even more focused on dividend-paying stocks. Why? Because when the price of garri, rice, and transport keeps climbing, those quarterly or yearly payouts feel like a lifeline.

In this article, we’ll take a deep dive into:

The top dividend-paying stocks on the Nigerian Exchange (NGX) in 2025.
How different sectors — banks, energy, cement, and consumer goods — stack up.
Why dividends are more than just “extra cash” in Nigeria’s economy.
How to build a strategy around dividend investing for long-term wealth.

By the end, you’ll know which companies are rewarding shareholders the most and how to make smarter investment choices.

Why Nigerians Love Dividend Stocks

There are two main reasons Nigerians prefer dividend stocks:

Cash Flow is King
With inflation at double digits and naira volatility, many investors don’t want to wait 10 years for stocks to grow. They want something they can spend today — dividends provide that.
Trust Issues
Stock prices can be manipulated by market sentiment, but dividends come from actual profits. A steady stream of payouts builds investor confidence, especially in big names like Zenith Bank or Dangote Cement.
Cultural Mindset
Nigerians generally love businesses that “share money.” Dividends feel like a reward for loyalty, making them a cultural fit in addition to being a financial benefit.

The Heavyweights: Top Dividend Payers in 2025

According to NGX and industry reports, here are the giants leading the dividend charts in 2025:

1. Dangote Cement Plc

Dividend Payout: ₦502.5 billion.
Why it matters: Dangote Cement dominates the cement industry and has strong pricing power. Even when costs rise, Nigerians keep building homes, roads, and infrastructure. That consistency fuels big dividends.

2. Seplat Energy

Dividend Payout: ₦104.8 billion.
Strength: As Nigeria’s leading independent energy company, Seplat benefits from oil price rebounds. Investors love it for its high cash flows and USD-denominated revenue streams, which also hedge against naira depreciation.

3. Aradel Holdings

Dividend Payout: ₦95.7 billion.
Why it stands out: A relatively new entrant, Aradel has made waves by rewarding shareholders aggressively. Its energy assets make it a future growth stock with strong dividends.

4. Lafarge Africa

Dividend Payout: ₦83.7 billion.
Strength: As another cement leader, Lafarge benefits from Nigeria’s never-ending demand for infrastructure. While not as dominant as Dangote, it still stands tall among dividend leaders.

5–10. Other Heavy Payers

Transcorp Power: ₦26.25 billion.
FBN Holdings: ₦25.12 billion.
Okomu Oil Palm: ₦24.8 billion.
FCMB Group: ₦21.8 billion.
Wema Bank: ₦21.43 billion.
Geregu Power: ₦21.25 billion.

These companies prove one point clearly: dividends are not just about banks — energy, agriculture, and cement are major contributors too.

Banks: The Heartbeat of Dividend Culture

When most Nigerians think dividends, they think banks. And for good reason:

Zenith Bank consistently pays one of the highest dividend yields in Nigeria, making it a favorite for income-focused investors.
GTCO (Guaranty Trust Holding Company) is slightly more conservative but has a reputation for reliability.
Access Holdings (AccessCorp) has been growing dividends as it expands aggressively across Africa.
UBA (United Bank for Africa) stunned investors in 2025 with one of the highest yields — above 10%.
Fidelity Bank also entered the high-yield club with ~10% returns.

If you’re curious about how these banks perform beyond dividends, you should definitely read: Comparing Nigerian Banks’ Stock Performance: GTCO vs Zenith vs Access.

Energy Stocks: Riding the Oil Wave

Oil and gas stocks are unique in Nigeria. While global oil prices can be volatile, they often translate into windfall dividends when times are good.

Seplat Energy remains the poster child, paying over ₦100 billion.
Aradel Holdings shocked investors with a bold payout strategy.
Geregu Power also joined the dividend elite, proving power companies can be solid income generators.

The lesson? Energy stocks can supercharge your dividend portfolio, but they come with higher risks tied to global oil prices.

Cement Giants: Building Wealth, Literally

Nigeria’s construction sector keeps cement demand high.

Dangote Cement doesn’t just dominate the industry — it dominates dividends too. ₦502.5 billion in H1 alone is unmatched.
Lafarge Africa is a quieter but steady payer.

Both companies demonstrate strong pricing power, meaning they can raise product prices without losing demand — an investor’s dream in high-inflation environments.

Consumer Goods: Mixed Performance

Consumer goods companies often struggle during inflationary times because Nigerians cut back on non-essentials.

Nestlé Nigeria: Reliable but not high-yield.
Nigerian Breweries: Dividend payouts fluctuate with consumer spending.
Okomu Oil Palm: Surprisingly, agriculture has been a solid dividend payer, with ₦24.8 billion in 2025.

Historical Context: Are Dividends Rising or Falling?

If we look back five years:

2020–2021: Pandemic years saw dividend cuts in some sectors but resilience in banks.
2022–2023: Inflation surged past 20%, but dividends from cement and energy companies grew.
2024–2025: Dividends hit record highs, led by Dangote Cement and Seplat.

Clearly, while inflation reduces purchasing power, companies with strong balance sheets have still managed to reward shareholders.

Case Study: ₦1 Million Investment

Imagine you invested ₦1,000,000 each in Zenith Bank, Dangote Cement, and Seplat Energy five years ago.

Zenith Bank: With average yields of ~8%, you’d have collected over ₦400,000 in dividends alone.
Dangote Cement: Around ₦350,000–₦400,000 in dividends, depending on the year.
Seplat Energy: Despite volatility, payouts could exceed ₦450,000, especially in strong oil years.

This shows the power of dividend compounding — steady income, even when stock prices fluctuate.

The Psychology of Dividend Investing

Nigerians trust dividends because they:

Provide certainty in uncertain times.
Act as a hedge against naira depreciation.
Encourage long-term holding rather than panic-selling.

Even investors who are risk-averse often dip into the stock market because they know dividends will land in their bank accounts.

Smart Strategies for Dividend Investors in 2025

Dividend investing sounds simple — buy shares, wait for payouts, cash in. But in reality, it requires a smart approach if you want to beat inflation and build wealth. Here are five strategies Nigerian investors should keep in mind in 2025:

1. Focus on Consistency, Not Just Yield

It’s tempting to chase the company with the highest dividend yield — especially when you see double-digit percentages. But not all that glitters is gold. A company paying 10% one year and nothing the next is riskier than a company that quietly delivers 6–7% every single year.

Consistency shows management discipline and a stable business model. Look at banks like Zenith Bank or GTCO — they may not always have the absolute highest yields, but they’ve built a reputation for never skipping dividends. That reliability is golden in a volatile economy like Nigeria’s.

2. Reinvest Your Dividends

When that alert drops into your bank account, it’s tempting to spend it on groceries, bills, or even a little “chop life” moment. But the smarter move? Reinvest those dividends.

Reinvesting means buying more shares, which then earn you more dividends in the future. Over time, this snowballs into serious wealth. It’s called compounding — your money works harder because you’re not just earning returns, you’re earning returns on your returns.

3. Diversify by Sector

Don’t put all your dividend eggs in one basket. Banking stocks are reliable, but if you only own banks, you’re exposed to risks like government regulations or sudden policy shifts. Cement companies like Dangote Cement and Lafarge Africa offer strong payouts too, while energy players like Seplat or Aradel Holdings can supercharge returns in oil boom years.

Mixing banks, cement, energy, and even agriculture (like Okomu Oil Palm) helps you balance risks while still enjoying healthy payouts.

4. Watch for Dividend Traps

Some companies flash eye-popping yields to attract investors — but they’re not sustainable. A company with declining profits might still declare a huge dividend to look attractive, but the following year, it could slash payouts or stop entirely.

Always check the company’s payout ratio (the percentage of profit paid as dividends). If a company is paying out more than it’s earning, that’s a red flag. In Nigeria, this has happened before with struggling consumer goods firms that couldn’t keep up after one or two generous payouts.

5. Think in Real Terms

On paper, a 10% dividend yield sounds amazing. But if inflation is running at 25%, you’re actually losing purchasing power. This is why smart investors compare dividend growth to inflation before celebrating.

For instance, a ₦3 per share dividend in 2020 bought more than a ₦3 dividend in 2025. If the company doesn’t keep pace with rising costs, your money shrinks in real life. That’s why understanding how inflation affects stock market returns is so critical for dividend investors.

Future Outlook: What to Expect in 2026 and Beyond

Banks will likely maintain high yields thanks to interest income.
Cement companies will stay strong due to infrastructure spending.
Energy companies will remain volatile but rewarding.
Consumer goods may struggle unless inflation eases.

The big unknown? Government policy. FX stability, fuel subsidies, and interest rates will all shape how companies generate profits and dividends.

Conclusion

In 2025, the Nigerian Exchange delivered some of the biggest dividend payouts ever. Dangote Cement, Seplat Energy, and Zenith Bank stand out, but plenty of other names — from Aradel Holdings to Okomu Oil Palm — are rewarding investors too.

For Nigerians navigating inflation and currency volatility, dividend investing remains one of the smartest ways to protect wealth. Just remember: think long-term, reinvest smartly, and always measure returns in real purchasing power, not just naira figures.

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