Multinationals Repatriate $2.8Bn in Five Years Despite FX Squeeze
Publicly listed companies with foreign majority ownership on the Nigerian Exchange (NGX) repatriated approximately $2.8 billion to their parent firms between 2020 and 2024. These multinationals collectively paid about N1.34 trillion in dividends during the five-year period under review.
However, this $2.8 billion outflow occurred at a time when Nigeria was grappling with persistent foreign exchange (FX) illiquidity. Despite the country’s liberal policy on fund repatriation, as enshrined in the NIPC Act, the practical realities told a different story, prompting many investors to explore alternative channels for repatriating their capital.
BusinessDay identified 16 NGX-listed companies with a majority foreign ownership. These firms span key sectors of the Nigerian economy—from consumer and industrial goods to manufacturing and telecommunications.
The list includes 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 companies underwent major structural changes over the review period. For instance, in 2023, GSK Consumer Nigeria delisted from the Exchange and ceased operations.
A year later, in 2024, Belgian agribusiness giant SIAT SA exited the Nigerian market by selling its stake in Presco Plc to local firm Saroafrica International.
An annual breakdown of dividend flows shows that 2023 was a record year in naira terms, with the companies returning a combined N369.3 billion to their foreign shareholders. In dollar terms, however, this amounted to $578 million, lower than the figures recorded in 2020, 2021, and 2022 due to the sharp devaluation of the naira.
In 2020, these companies repatriated an estimated $631 million (N227.1 billion), rising to $715 million (N288.1 billion) in 2021 and peaking at $821.5 million (N348.3 billion) in 2022. These figures are based on the average exchange rates for each year: N360/$ in 2020, N403/$ in 2021, N424/$ in 2022, N639/$ in 2023, and an estimated N1,500/$ for 2024.
MTN Nigeria and the other heavyweights
MTN Nigeria was the single largest contributor to capital outflows, repatriating approximately $1.78 billion to its parent firm, MTN Group Limited, between 2020 and 2023. In naira terms, this amounted to about N805.6 billion. Over the same period, MTN Nigeria declared N1.02 trillion in total dividends, with the South African telecom giant holding a 78.8 percent stake in the company.
This is not the first time MTN’s dividend practices have stirred controversy. Before its 2019 listing on the NGX, the telecoms firm faced regulatory pushback after it was accused of illegally repatriating $8.1 billion from Nigeria between 2007 and 2015.
Next in line was Stanbic IBTC Holdings, which remitted about N159 billion (approximately $303 million) to its parent company, South Africa’s Standard Bank Group, over the five-year period.
Nestlé Nigeria, a subsidiary of the Swiss multinational Nestlé S.A., returned N122 billion—equivalent to around $292 million—to its parent between 2020 and 2023. However, the company’s financial performance took a nosedive beginning in 2023. It posted a net loss of N79.5 billion, largely driven by a N195 billion FX loss following the devaluation of the naira. Losses deepened in 2024, reaching N164.6 billion.
Lafarge Africa, majority-owned by Swiss cement giant Holcim, also recorded significant outflows, repatriating N106.6 billion between 2020 and 2024. Oil palm producers Okomu Oil Palm and Presco Plc were not left out. Between 2020 and 2024, Okomu remitted N39.9 billion to its majority shareholder, SOCFIN, while Presco paid N26.2 billion to SIAT.
Nigerian Breweries Plc remitted about N25.4 billion between 2020 and 2023. TotalEnergies Marketing returned N17.8 billion to its majority shareholders, French oil giant TotalEnergies SA.
The challenges under Emefiele
During Godwin Emefiele’s tenure as Governor of the Central Bank of Nigeria (CBN), the country faced significant challenges with profit repatriation, primarily due to persistent foreign exchange (FX) liquidity constraints.
In 2020, MTN Group, a major telecommunications operator, encountered difficulties repatriating approximately $280 million in earnings from Nigeria. This challenge compelled the Johannesburg-listed company to suspend its final dividend payout for that year, citing the inability to realise the proceeds of its assets.
Similarly, by July 2022, foreign airlines operating in Nigeria reported that a combined total of $464 million in ticket sales revenue was blocked from repatriation due to the country’s FX constraints.
This issue caused severe damage to investor confidence and the operational viability of multinational companies within Nigeria.
Under Yemi Cardoso as the CBN Governor, a couple of reforms have been initiated and some of the challenges with regards to funds repatriation have been addressed. After clearing up a backlog of about $7 billion in FX obligations, there has been an observed ease in repatriating funds.
The role of dual-listed equities
One key alternative channel for capital repatriation was the equities market, particularly through dual-listed securities on the Nigerian Exchange (NGX). During those periods of stringent capital controls, investors had to turn to these instruments to navigate FX liquidity constraints.
A notable example is the NewGold ETF, which is also listed on the Johannesburg Stock Exchange and the Stock Exchange of Mauritius. In 2020, it recorded a cumulative trading value of N57.09 billion, though this declined to N34.35 billion in 2021.
Similarly, Seplat Energy, dual-listed on the NGX and the London Stock Exchange, experienced a sharp rise in trading activity during the same period. Its cumulative trading value rose from N6.08 billion in 2019 to N19.55 billion in 2020, and further to N48.27 billion in 2021.
Typically, investors seeking to circumvent the limited liquidity in Nigeria’s foreign exchange market opted to convert dividends into shares of these dual-listed equities and then execute trades on the more liquid foreign exchanges.
However, with improved liquidity in the Nigerian FX scene, resorting to these avenues has severely declined. For example, in 2024, NewGold ETF witnessed a total trading value of about N126 million, representing a 99.8 percent decline from the 2020 figure.
