Between 2020 and 2024, sixteen multinational corporations with majority foreign ownership, listed on the Nigerian Exchange (NGX), successfully repatriated a staggering $2.8 billion to their parent companies—despite Nigeria’s prolonged foreign exchange (FX) crisis.
While the country battled acute dollar shortages and capital control challenges, these firms, spanning critical sectors from telecoms and consumer goods to oil and manufacturing, found ways to move funds out of the country. Their combined dividend payouts over the five-year period amounted to approximately ₦1.34 trillion, highlighting the scale of capital flight even under adverse financial conditions.
The significant capital outflows occurred in spite of Nigeria’s formal commitment to a liberal repatriation policy outlined in the Nigerian Investment Promotion Commission (NIPC) Act. However, practical implementation often diverged from this policy, leading many foreign investors to pursue alternate strategies for extracting their returns from the country.
Diverse Sectors, Foreign Control
According to data compiled by BusinessDay, 16 firms on the NGX were found to have foreign majority shareholders. These companies operate across several critical industries, including telecommunications, industrial and consumer goods, and manufacturing.
Notable names on the list include MTN Nigeria, Stanbic IBTC Holdings, Lafarge Africa, TotalEnergies Marketing Nigeria, Okomu Oil Palm, Presco Plc, Nigerian Breweries, Guinness Nigeria, Cadbury Nigeria, Unilever Nigeria, PZ Cussons, Beta Glass, International Breweries, and GSK Consumer Nigeria.
Some of these firms saw significant operational shifts during the review period. Notably, **GSK Consumer Nigeria** exited the NGX and wound down its Nigerian operations in 2023. Similarly, **Presco Plc** saw its Belgian majority stakeholder **SIAT SA** divest its shares to Nigeria’s **Saroafrica International** in 2024.
Dividend Flow Breakdown
The highest dividend payout in naira terms occurred in 2023, when these firms disbursed N369.3 billion to their overseas shareholders. However, due to the steep depreciation of the naira, this amounted to just $578 million, a reduction from prior years when the local currency held more value.
Yearly repatriation figures, based on average annual exchange rates, reflect the growing burden of currency devaluation:
- 2020: $631 million (N227.1 billion at N360/$)
- 2021: $715 million (N288.1 billion at N403/$)
- 2022: $821.5 million (N348.3 billion at N424/$)
- 2023: $578 million (N369.3 billion at N639/$)
- 2024: Estimates project significantly reduced dollar value due to an exchange rate of N1,500/$
MTN Leads the Outflows
South African telecoms giant **MTN Group Limited** was by far the most significant player in terms of repatriated funds. Its Nigerian subsidiary, **MTN Nigeria**, accounted for approximately $1.78 billion—around **N805.6 billion** in local currency—returned to the parent firm between 2020 and 2023. During the same period, the firm declared **N1.02 trillion** in dividends, with MTN Group holding a **78.8 percent** stake.
This isn’t MTN’s first encounter with controversy over dividend remittances. Prior to its 2019 NGX listing, it faced scrutiny over an alleged illegal repatriation of $8.1 billion between 2007 and 2015.
Other Major Repatriations
Following MTN, Stanbic IBTC Holdings transferred approximately N159 billion (roughly $303 million) to its South African parent, Standard Bank Group.
Nestlé Nigeria, owned by Swiss food giant Nestlé S.A., remitted N122 billion, or $292 million, from 2020 to 2023. But beginning in 2023, the company’s financial health deteriorated. It reported a N79.5 billion net loss due to N195 billion in FX-related losses, with 2024 showing an even steeper net loss of N164.6 billion.
Other notable transactions included:
* Lafarge Africa: N106.6 billion to Swiss cement maker Holcim
* Okomu Oil Palm: N39.9 billion to majority owner SOCFIN
* Presco Plc: N26.2 billion to **SIAT SA** before the firm’s exit
* Nigerian Breweries: N25.4 billion remitted from 2020 to 2023
* TotalEnergies Marketing Nigeria: N17.8 billion to **TotalEnergies SA**
Policy Environment under Emefiele
Under former Central Bank Governor Godwin Emefiele, the FX environment was particularly challenging. Multinational firms faced mounting obstacles in transferring profits out of Nigeria due to chronic liquidity shortages.
In 2020, MTN Group struggled to repatriate $280 million, prompting it to suspend its final dividend that year. “The inability to realise the proceeds of its assets” was cited as a reason for the halt.
In another blow, foreign airlines operating in Nigeria reported a combined $464 million in trapped ticket sales revenue by mid-2022, further amplifying fears about Nigeria’s FX reliability.
New CBN Leadership, New Direction
Under the current CBN Governor Yemi Cardoso, some of these bottlenecks are being cleared. A notable achievement was the clearance of a $7 billion FX backlog, which has somewhat eased the process of repatriating funds for foreign businesses.
Dual-Listed Equities: A Workaround
In the face of strict capital controls, some investors turned to **dual-listed equities** as a workaround. These financial instruments allowed investors to transfer value via stocks listed both in Nigeria and on foreign exchanges.
A prime example is the NewGold ETF, which is also traded on the Johannesburg Stock Exchange and the Stock Exchange of Mauritius. It posted a trade volume of N57.09 billion in 2020, although this fell to N34.35 billion in 2021.
Similarly, Seplat Energy, which is dual-listed on the NGX and the London Stock Exchange, saw its cumulative trade volume surge from N6.08 billion in 2019 to N48.27 billion in 2021.
During periods of tight FX access, investors would often convert their cash dividends into shares of these dual-listed firms, then trade them abroad where liquidity was stronger.
But with FX conditions easing in 2024, the need for these methods has sharply declined. For example, the NewGold ETF’s 2024 trade volume was a mere N126 million, marking a 99.8 percent drop from its 2020 high.
