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Business News of Thursday, 9 June 2022


Nigerian billionaires rake in N478 billion as dividends in 2021

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The first part of the earnings season is over and as expected, some of Nigeria’s most profitable companies have declared billions of naira in dividend payments. Among the shareholders who have received their dividends are founders, directors and major owners of these Bluechip companies.

Some of these very accomplished few own at least 5% of the total shares (directly and/or indirectly) of the companies under review and sit on the board or have their proxies representing them on the board.

According to our data, these eighteen billionaires received N478.1 billion from their direct and/or indirect stakes through dividend payments for the 2021 financial year. The aforementioned amount and information include both interim and final dividend declarations.

A further breakdown of the analysis shows that N126.44 billion were received from direct holdings, while N351.69 billion through third parties’ indirect holdings.

Mike Adenuga – N1.43 billion

Nigerian telecom mogul, Mike Adenuga earned at least N1.43 billion in dividends from his stake in oil and gas firm, Conoil, construction company, Julius Berger, and Sterling Bank. Conoil and Julius Berger declared a total dividend per share of N2.5 in 2021, while Sterling Bank declared 10k per share.

It is also worth noting that Mike Adenuga is the chairman of the third-largest telecommunications company in Nigeria, Globacom. However, the company is not a listed entity, hence is not considered in this compilation.

Breakdown: According to the disclosure of Conoil, Mike Adenuga owns 103.26 million units of shares indirectly in the company, representing Conpetro Limited translating to 14.88% controlling interest in the company. Conpetro which is an investment company of the billionaire controls 74.4% of Conoil’s shares.

His indirect shares of 103.26 million earned him N258.15 million.

On the other hand, the billionaire magnate controls 25.37% stake in Julius Berger, through Goldstone Estates Ltd, Bilton Securities, and Batco Integrated Sun Concepts, which earned him N1.01 billion. Note that his stake in Julius Berger is represented by his daughter, Mrs. Belinda Ajoke Disu.

Also, the billionaire owns 1.62 billion units of shares in Sterling Bank, representing 5.63% controlling interest in the company, which earned him N162.04 million in the review year.

Herbert Wigwe – N1.52 billion

Herbert Wigwe is the Group Managing Director of Access Holdings Plc. He earned a sum of N1.52 billion dividend from his direct and indirect holdings in the company as the bank declared a dividend per share of N1 (interim: 30k, final: 70k).

The business magnate has a 4.27% controlling interest in the largest bank in the country (by asset as of March 2022).

He owns 201.23 million units of shares directly, which earned him a dividend of N201.23 million while his 1.31 billion units of shares held through United Alliance Company of Nigeria, Trust and Capital Limited, Coronation Trustees Tengen Mauritius, earned him a total of N1.31 billion.

It is worth noting that the final dividend of 70k declared for 2021 has been paid on April 28, 2022, as interim dividend.

Austin Avuru – N1.99 billion

The founder and executive chairman of AA Holdings, Austin Avuru who controls 8.2% interest in Seplat Energy Plc, with his 48.25 million units of shares held indirectly through Platform Petroleum and Professional Support, earned an estimated N1.99 billion as dividends from the oil and energy company in 2021.

The company, which paid 0.025 cents for every quarter in the year, using the prevailing exchange rate for each of the periods, declared a total dividend per share of N41.3. Austin Avuru was recused from the board of directors of the company following his Declaration of Conflict.

Tony Elumelu – N2.38 billion

The Chairman of the United Bank for Africa, Tony Elumelu, owns a total of 2.38 billion units of shares in the Pan-African Bank.

The breakdown of these figures shows that he owns a direct share of 194.67 million units and further 2.19 billion units of indirect shares in the bank through HH Capital Limited, Heirs Holdings Limited, and Heirs Alliance Limited.

With an improved total dividend of N1.00 per share for the full year 2021 (Interim: 20k, and final: 80k), the astute banker earned a sum of N2.38 billion as dividends from his direct and indirect shareholdings for the period under review.

UBA paid the N0.8 total dividend per share to its shareholders on Thursday, April 7, 2022.

Abdulsamadu Rabiu (Jr) – N6.27 billion

The son of businessman founder of BUA Cement and BUA Foods, Abdulsamadu Rabiu (Jr) earned N6.27 billion as dividends from his stake in BUA Foods for the period under review.

The company declared a total dividend per share of N3.5 in 2021, which earned him N6.27 billion through his 1.79 billion shares (9.96% controlling interest).

Jim Ovia – N15.72 billion

Nigerian business mogul, Jim Ovia is the founder of Zenith Bank, one of the largest commercial banks in Nigeria. He earned N15.72 billion from his direct and indirect stake in the bank as the company declared and paid a total dividend per share of N3.1 for 2021

Zenith Bank declared an interim dividend of 30k per share in the half-year period of the year, and N2.8 final dividend for the full year, which was paid to shareholders on April 6, 2022.

Breakdown: Jim Ovia owns 3.55 billion units of shares directly in the bank with an additional 1.53 million indirect shares through Institutional Investors Ltd, Lurot Burca Ltd, Jovis Nigeria Ltd, Veritas Registrars Ltd, Quantum Zenith Securities Ltd, giving him a controlling right of 16.16% in the company.

He earned N10.99 billion as a dividend from his direct stake in the bank and an additional N4.73 billion from his indirect holdings, summing up to N15.72 billion.

Abdulsamadu Rabiu – N143.09 billion

The Chairman of dual listed BUA companies (BUA Foods and BUA Cement), Abdulsamadu Rabiu raked N143.09 billion from his holdings in the two companies for the 2021 financial year. His earnings accounted for 29.9% of the dividends received by the nineteen billionaires under our radar.

BUA Cement declared a dividend per share of N2.6, which is set to be paid to its shareholders by 21st July 2022, while BUA Foods declared a final dividend of N3.5 per share, to be paid by 4th August 2022.

Breakdown: Rabiu owns 19.04 billion units of shares in BUA Cement directly and 14.2 billion indirectly through Damnaz Cement Company Limited, BUA International Limited, and BUA Cement Company Limited, summing up to a 98.23% controlling right of the company.

His direct holdings in the company earned him N49.52 billion dividends, while he is set to receive N36.97 billion from his indirect shares, summing up to N86.49 billion.

In the same vein, the 16.17 billion direct holdings of the businessman billionaire earned him N56.6 billion from BUAFoods. He also owns 2.04 million shares indirectly through BUA Group Limited, BUA International Limited, BUA Industries Limited, which earned him N7.14 million.

Between Alh. Rabiu and his indirect investors, they are set to earn a combined N143.09 billion in dividends.

Aliko Dangote – N301.76 billion

Alhaji Aliko Dangote, the chairman of Dangote Cement and the richest man in Africa, alongside his indirect investors are set to earn a sum of N293.63 billion as dividends from his direct and indirect stakes in his companies (Dangote Cement and Dangote Sugar Refinery).

His dividend earnings account for 63.1% of the total N478.1 billion under our compilation. Dangote Cement declared N20 per share as its final dividend for the 2021 financial year and is set to pay its shareholders by June 15, 2022.

Breakdown: Aliko Dangote owns 27.64 million units of shares directly in Dangote Cement, with 14.62 million held indirectly through his company, Dangote Industries, which aggregates to a total holding of 14.65 billion units of shares (or 85.97% holdings) in the cement company.

His direct holding in Dangote Cement is set to earn him N552.95 million, while his indirect holdings raked in a sum of N292.43 billion, summing up to N292.98 billion.

Also, the business mogul controls 0.05% of Dangote Sugar Refinery, through his direct holdings of 653.09 million units of shares, which earned him N653.1 million as the company is set to pay a dividend per share of N1 come 16th June 2022. He also controls 8.12 billion units of shares in the company through Dangote Industries Limited, earning him N8.12 billion.