Investor sentiment on the trading floor of the Nigerian Exchange Limited flared bullishly, driving a 10 per cent midday price appreciation in the shares of VFD Group Plc following the overwhelming approval of its corporate resolutions.
The equity rally coincided with the investment company’s 10th Annual General Meeting held in Lagos, where shareholders greenlit a total dividend payout of N0.25 per 50 kobo ordinary share for the financial year ended 31 December 2025.
The approved dividend, which translates to an aggregate payout of approximately N3.2bn, represents a 32.2 per cent payout ratio. For investors who participated in the group’s massive N50.6bn capital raise via a rights issue, the distribution delivers a neat 10 per cent annualised return on their N10.00 entry price.
Addressing shareholders after the voting proceedings, the Group Managing Director and Chief Executive Officer of VFD Group, Nonso Okpala, attributed the market’s positive reaction to structural discipline rather than favourable trading conditions.
He said, “Year after year, despite the operating environment and the costs associated with growth, VFD Group has remained committed to rewarding its shareholders through consistent dividend declarations. That outcome is not driven by luck. It is the result of deliberate planning, disciplined execution, and a clear determination to succeed as an institution.”
Okpala further explained that the financial returns were generated entirely from the group’s existing portfolio, given that regulatory clearance from the Securities and Exchange Commission to deploy the newly raised capital was only secured recently.
He said, “The capital raised will support the continued execution of our strategy across our five major verticals: market infrastructure, capital market operations, real estate and hospitality, financial services, and retail technology.
“Those funds are being deployed into these verticals to deepen our market positions and ensure that our businesses within those sectors become top five players in the economy.”
Supporting the management’s capital allocation strategy, the Chairman of the Board, Olatunde Busari SAN, emphasised that institutional risk mitigation is critical as the group expands its presence beyond Nigeria.
“Transparency, accountability, and compliance are extremely important to us. Given the scale of our activities and investments across sectors, risk management is a critical priority for us. We continue to strengthen our governance and risk frameworks, and that disciplined approach has contributed significantly to the company’s consistent growth,” Busari noted.
Providing context on the group’s strong balance sheet position, the Executive Director of Finance and Investor Relations, Folajimi Adeleye, told shareholders that diversification serves as a buffer against wider macroeconomic volatility.
“One of the major advantages we have at VFD Group is the strength of our diversified portfolio. That diversity allows us to benefit from different business and earnings cycles across sectors,” Adeleye stated.
In addition to the dividend approval, shareholders voted with margins exceeding 99 per cent to re-elect Ms Omolola Bolusire as an Independent Non-Executive Director and retain PricewaterhouseCoopers as the group’s external auditors.
