By Peter Egwuatu
The Board of Directors of VFD Group Plc has proposed a final dividend of N0.25 per share, translating to an annualised return of 10% for shareholders who participated in the December 2025 Rights Issue at N10.00 per share.

In a statement, VFG Group, stated: “Dividends remain an important component of shareholder returns, particularly for investors seeking periodic cash flow. However, for growth-oriented companies, capital appreciation often represents the primary driver of long-term value creation. 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.

“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.”

Commenting on the company’s performance, Nonso Okpala, Group Managing Director/CEO, VFD Group Plc, said : “ 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 “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.”

“The real story is what comes next. We are entering a phase where capital meets opportunity at scale. Our focus is on deploying efficiently, managing risk rigorously, and ensuring that every naira works to compound value across the ecosystem. That is how we build enduring shareholder wealth.

“This speaks to the strength of our existing platform and the discipline with which we run the business,” Okpala added.

Since the close of the Rights Issue, the Group’s share price has appreciated to approximately N12, reflecting a 20% gain Year-to-Date, YtD.

Commenting as well, Folajimi Adeleye, Executive Director, Finance & Investor Relations, said : “ 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 32.2%. For Rights Issue participants, this equates to a 10% annualised return on their N10.00 entry price, an attractive return given current market conditions.

“From a capital allocation perspective, this outcome reflects both discipline and timing.We have delivered strong returns without yet deploying the Rights Issue proceeds, which underscores the earnings strength of the existing portfolio. As we begin to deploy this capital into yield-generating opportunities, we expect to further enhance returns and sustainably grow shareholder value,” Adeleye added.

“As the Rights Issue proceeds are deployed into yield-generating investments, and the portfolio matures, the Group expects its earnings capacity, and consequently its dividend-paying ability, to strengthen further.

The Board remains committed to a clear objective which is to grow dividend payouts consistently over time, both in absolute terms and on a per-share basis, as returns from the expanded portfolio materialize” Adeleye noted .