Shareholders of Vitafoam Nigeria Plc have approved a dividend of ₦3.00 per share for the financial year ended September 30, 2025, alongside a bonus share issue and an increase in the company’s share capital following resolutions passed at the company’s 64th Annual General Meeting.
The meeting was held on March 5, 2026 at NECA House in Ikeja, Lagos, where shareholders also reviewed and adopted the company’s audited financial statements and reports of the directors and auditors for the year under review.
According to the resolutions released by the company on Friday, the approved dividend amounts to ₦3.75 billion, payable to shareholders whose names appeared in the company’s register of members as of February 6, 2026.
Share Capital Increase
Shareholders also approved an increase in the company’s share capital from ₦625.42 million to ₦750.51 million, reflecting an expansion of the company’s issued ordinary shares.
The revised capital structure now consists of 1.501 billion ordinary shares of 50 kobo each, with the new shares ranking equally with the existing shares in all respects.
The company also approved amendments to its Memorandum and Articles of Association to reflect the new share capital structure.
Bonus Share Issue
In addition to the cash dividend, Vitafoam shareholders approved the capitalisation of ₦125.08 million from retained earnings for the issuance of bonus shares.
Under the arrangement, the company will issue 250.17 million new ordinary shares to existing shareholders on the basis of one new share for every five existing shares held.
The bonus shares will be credited as fully paid shares to shareholders on the register as of February 6, 2026, subject to regulatory approvals.
However, the new shares will not qualify for the dividend declared for the 2025 financial year, although they will rank equally with existing shares thereafter.
Board and Governance Decisions
At the meeting, shareholders also approved the re-election of Mr. Ademola O. Bolarinde and Mr. Achike Charles Umunna as directors following their retirement by rotation.
Members of the company’s audit committee were also re-elected, including Rev. Ibiyinka Elusade, Mr. S. B. Adenrele and Mr. Gbadebo Olatokunbo, while Mr. Abdul A. Bello and Mr. Ademola Bolarinde will serve as board representatives on the committee.
The company further authorized the board to determine the remuneration of the external auditors and approved directors’ fees for the 2025/2026 financial year.
Shareholders also granted approval for the renewal of recurrent related-party transactions required for the company’s day-to-day operations in line with the rules of the Nigerian Exchange Limited.
In addition, the company approved a review of the severance compensation policy for retiring directors.
Strategic Outlook
The resolutions adopted at the AGM are expected to strengthen Vitafoam’s capital structure while rewarding shareholders through both dividend payments and additional equity holdings.
The capital increase and bonus share issuance are also expected to improve liquidity in the company’s shares on the Nigerian Exchange while supporting the company’s long-term growth strategy.
Vitafoam Nigeria Plc remains one of the leading manufacturers of flexible, rigid and reconstituted foam products in Nigeria and across West Africa.