Top Nigerian Dividend Stocks for Passive Income in 2025

Many Nigerians dream of earning money while they sleep. One of the most realistic ways to achieve that is through dividend-paying stocks. These are shares of companies that reward investors with regular cash payouts—usually every quarter or year—just for holding their stock.

In this post, we’ll break down the top dividend stocks on the Nigerian Exchange (NGX) that offer you consistent passive income in 2025. Whether you’re a beginner investor or looking to build your retirement fund, these stocks can serve as the bedrock of your long-term wealth plan.

Why Dividends Matter in Nigeria

In an economy with high inflation, fluctuating naira value, and limited job security, dividends provide a steady income stream without selling your shares. Over time, this income can be reinvested to accelerate your wealth.

Here are key reasons why dividend stocks are smart in Nigeria:

• ✅ Help you beat inflation
• ✅ Provide cash flow without working more
• ✅ Offer a safer investing strategy than high-risk trading
• ✅ Let you earn in naira or even dollars (for dual-listed companies)

Top Dividend Stocks on the NGX in 2025

1. Zenith Bank Plc

Zenith is Nigeria’s most consistent dividend-paying bank. It’s known for strong profitability, risk management, and shareholder returns. It pays dividends twice a year and often yields 10–14% annually.

2024 dividend: ₦3.50 per share
Why buy: Strong capital base, steady profit, high dividend payout

2. United Bank for Africa (UBA)

UBA is a pan-African bank with operations in over 20 African countries. It pays a generous dividend and has growth potential from its expanding reach. Its dividend yield often hovers between 9% and 13%.

Bonus: UBA also rewards long-term investors with bonus issues.

3. Seplat Energy Plc

This oil and gas company pays quarterly dividends in USD, making it attractive to investors looking for dollar exposure. Seplat offers one of the highest dividend yields in Nigeria.

Why it stands out: Dollar income + strong balance sheet + energy sector boost

If you’re unsure how to identify strong dividend stocks like Seplat, the SASIM Course can help you analyze dividend yield, payout ratio, and growth sustainability.

4. MTN Nigeria

Telecom is a defensive sector. MTN Nigeria pays consistent dividends and benefits from growing data usage, fintech expansion (MoMo), and a large subscriber base.

Recent payout: ₦15.60 per share
Dividend yield: ~8–10%

5. TotalEnergies Nigeria

TotalEnergies is another oil company that pays strong dividends, especially when oil prices rise. It’s one of the most investor-friendly companies in Nigeria, consistently rewarding shareholders.

Why it’s great: Cash-rich, long dividend history, good governance

How to Start Earning Dividends

You don’t need millions to get started. Here’s a simple process to follow:

1. ✅ Open a CSCS account through a stockbroker
2. ✅ Fund your account and buy dividend-paying stocks
3. ✅ Hold for the long-term and reinvest your dividends

Tip: Buy before the qualification date to be eligible for upcoming dividends.

Want to learn how to pick stocks and build a dividend strategy in Nigeria? The SASIM Masterclass gives you step-by-step instructions, tools, and real-world examples.

What is a Good Dividend Yield in Nigeria?

Anything above 7% is considered good. Many of the stocks listed above pay 10% or more, which beats most fixed deposit or savings rates.

But don’t just chase yield—also check:

• 📌 Dividend consistency (past 5 years)
• 📌 Company profitability
• 📌 Debt level
• 📌 Industry outlook

The SASIM Course shows you how to screen for all these indicators using free tools in Nigeria.

Final Thoughts

Dividend investing is a powerful way to build wealth in Nigeria. It doesn’t require daily trading or speculation. It rewards patience and discipline with cash in your bank account—regularly.

Start small. Build over time. Let your money start working for you.

If you want expert guidance on how to get started with high-performing dividend stocks, SASIM will walk you through it in plain, practical steps.