VFD Proposes N0.25 Dividend as Rights Issue Subscribers Earn Strong Returns

Kayode Tokede

The Board of Directors of VFD Group Plc has proposed a final dividend of N0.25 per share, translating to an annualised return of 10per cent for shareholders who participated in the December 2025 rights issue at N10.00 per share. 

The proposed dividend is subject to shareholder approval at the upcoming Annual General Meeting (AGM).

The Board, therefore, maintains a balanced approach of rewarding shareholders in the short term, while retaining sufficient earnings to fund future growth and enhance overall valuation.

When VFD Group launched its rights issue in late 2025, it provided shareholders with an opportunity to subscribe to new ordinary shares at N10.00 per share to support the Group’s next phase of expansion. In hindsight, this represented a highly attractive entry point.

“This is ultimately about trust and execution. Our shareholders backed us at a pivotal moment, and what we are demonstrating is our ability to convert that confidence into measurable value. Even before deploying the new capital, we are delivering strong returns,” said Nonso Okpala, Group Managing Director/CEO, VFD Group.

“Beyond this performance, we are equally focused on consistency. Our ambition is to build a track record of disciplined and sustainable dividend payments, supported by strong earnings and long-term value creation,” said Okpala. 

Since the close of the rights issue, the Group’s share price has appreciated to approximately N12, reflecting a 20per cent gain year-to-date. The Board of Directors proposed a final dividend of N0.25 (25 kobo) per ordinary share for the financial year ending 31 December 2025 which amounts to a total payout of approximately N3.2 billion representing a payout ratio of 32.2per cent. 

“From a capital allocation perspective, this outcome reflects both discipline and timing,” said Folajimi Adeleye, Executive Director, Finance & Investor Relations.