Three of Nigeria’s biggest publicly listed companies — Nigerian Breweries Plc, MTN Nigeria Communications Plc, and Nestlé Nigeria Plc — are expected to resume dividend payments in 2026. This comes after a period of suspended payouts, bringing hope to shareholders who have endured challenging market conditions and weaker corporate earnings in recent years.
The anticipated return to dividends is linked to stronger profitability, market recovery, and improved investor sentiment across the Nigerian capital market. Industry analysts believe that the move could signal a turnaround for the country’s blue-chip stocks, especially in the consumer goods and telecommunications sectors.
MTN Nigeria, once the most valuable company on the Nigerian Exchange (NGX), had faced tough times due to foreign exchange volatility, rising interest expenses, and retained losses that eroded shareholder value. However, in 2025, the telecom giant began a steady recovery, driven by strong growth in data revenues and a rebound in earnings. Analysts at CardinalStone Partners forecast that the company’s improved equity position and healthy profit margins will enable it to declare dividends for the 2025 financial year, which would be paid in 2026.
Nigerian Breweries Plc has also seen a remarkable turnaround in its financial performance. The brewer reported a pre-tax profit of ₦43.87 billion in the second quarter of 2025, marking its first positive half-year result after suffering losses during the same period in 2024. The company’s recovery has been linked to improved operational efficiency, reduced cost pressures, and better sales performance in the beer and malt segment. This stronger performance has sparked optimism that dividend distributions could resume next year.
Nestlé Nigeria Plc, the producer of household brands like Maggi seasoning cubes, Milo beverage, and Cerelac infant cereal, is also on a path of gradual recovery. While the company has not paid dividends recently, market watchers believe its resilience in maintaining strong sales volumes despite high inflation and currency depreciation is a positive sign. Many expect Nestlé to follow Nigerian Breweries and MTN in restoring shareholder payouts as profitability improves.
For investors, the years without dividends have been frustrating, especially for those who rely on these payouts for regular income. The expected resumption in 2026 would not only reward long-term shareholders but also signal a stronger outlook for the Nigerian economy after a period of currency reforms, high operating costs, and volatile global market conditions.
Analysts point to several key factors driving the renewed optimism:
- MTN Nigeria’s strong operational rebound and improved balance sheet.
- Nigerian Breweries’ verified profits after multiple quarters of losses.
- Nestlé’s consistent demand base for its essential consumer goods.
However, experts also caution that execution will be key. These companies must maintain earnings stability, demonstrate prudent capital allocation, and navigate ongoing economic challenges. Shareholders will be closely monitoring quarterly financial results, board announcements, and capital expenditure decisions to assess whether the dividend targets are achievable.
If the 2026 payouts materialize as expected, it will not only mark a recovery milestone for these individual companies but could also boost activity on the Nigerian Stock Exchange. A return to consistent dividends from top-tier corporates could attract new domestic and foreign investors, improve market liquidity, and enhance confidence in corporate governance practices in Nigeria’s capital market.
The broader implication is that a healthy dividend culture in blue-chip stocks helps strengthen the overall investment climate, offering both stability and growth opportunities for investors. With market conditions gradually improving, stakeholders are hopeful that this positive dividend outlook will be sustained beyond 2026.
