Nigerian Breweries, MTN, Nestlé Set to Revive Dividend Payouts in 2026 as Profits Surge
After two years of foreign exchange volatility and soaring finance costs that forced top Nigerian companies to halt shareholder rewards, a dividend revival could be on the horizon. Nigerian Breweries, MTN Nigeria, and Nestlé Nigeria—once known for steady payouts—are on track to resume dividends in 2026, driven by foreign exchange stability, operational recovery, and improved balance sheets in 2025. Analysts say the earnings rebound is not only restoring investor confidence but also positioning these stocks for stronger valuations.
Nigerian Breweries, which last paid a dividend in 2022, reported steep losses in 2023 and 2024, largely due to FX pressures. However, mid-2025 results show a dramatic turnaround, with N88.42 billion profit after tax—five times its 2022 earnings—and retained losses almost halved. With shareholders’ funds at N549 billion and strong quarterly profits, analysts forecast a full-year profit of up to N180 billion, potentially clearing retained losses in early 2026 and enabling a dividend payout for the 2025 financial year. Champion Breweries has already broken a six-year dry spell, paying a dividend in 2024 and continuing its profitability streak in 2025.
In telecoms, MTN Nigeria’s fortunes have reversed sharply after record losses in 2023 and 2024 pushed equity deep into negative territory. By mid-2025, the company posted N415 billion profit after tax, slashing retained losses to N193 billion and narrowing negative equity significantly. FX losses have fallen dramatically, while tariff hikes and rising data revenues have boosted margins. Analysts project that if current performance continues, MTN could post up to N850 billion profit in 2025, restoring positive equity and paving the way for a dividend comeback.
The fast-moving consumer goods sector is also rebounding. Nestlé Nigeria, after steep losses that pushed equity into the red, recorded improved half-year results in 2025, with retained losses reduced to N193 billion and FX losses turning into gains. Similarly, Cadbury Nigeria has returned to profitability after two difficult years, earning N10 billion in the first half of 2025 and trimming retained losses. While Nestlé could re-enter dividend territory by year-end, most observers expect Cadbury’s payout to resume in 2026.
Market analysts believe the dividend drought for Nigeria’s blue-chip companies could end soon if current momentum continues. As Benjamin Asiotu of El-Elyon Alliance and Securities Limited puts it, “If the earnings run-rate we’ve seen in the first half holds through December, 2025 won’t just be the year profits returned—it will be the year dividends made a comeback.” For income-focused investors, 2026 could be the year when Nigeria’s biggest brands restore one of their most valued traditions—rewarding shareholders in cash.
Source: Nairametrics