eTranzact proposes 12.5k dividend, sets July 23 for AGM

eTranzact International Plc has announced a final dividend of 12.5 kobo per ordinary share of 50 kobo for the financial year ended December 31, 2025, subject to withholding tax and shareholder approval.

According to a corporate disclosure released on March 31, 2026, shareholders whose names appear in the company’s register of members as at the close of business on July 6, 2026, will be eligible to receive the dividend.

The company stated that it does not propose any bonus issue for the period under review.

eTranzact also disclosed that its register of shareholders will be closed from July 7 to July 22, 2026, ahead of the qualification date. Dividend payments are scheduled to be made electronically on July 23, 2026, to shareholders who have completed the e-dividend registration process and mandated the registrar to credit their bank accounts directly.

READ ALSO: Rising costs cut eTranzact’s profit by 16% in 2025

Shareholders who are yet to enrol for the e-dividend system have been advised to download and complete the mandate activation form available on the registrar’s website or through their banks.

The company further urged investors with unclaimed dividend warrants or share certificates to regularise their holdings by contacting the registrar or completing the e-dividend process.

eTranzact’s Annual General Meeting (AGM) will be held on July 23, 2026, at 12 noon at its designated venue on Adeyemo Alakija Street, Victoria Island, Lagos.

Meristem Registrars and Probate Services Limited will act as the registrar for the exercise, while investor relations enquiries can be directed to the company via its dedicated contact channels.

Recent financials

eTRANZACT International, one of Nigeria’s leading payment and switching companies listed on the Nigerian Exchange (NGX), saw its profits take a hit in 2025 due to rising transaction, administrative, and marketing costs.

According to the company’s 2025 financial statements, eTranzact recorded revenue of N29.824 billion, a modest increase from N29.505 billion in 2024. However, high operational costs significantly eroded the firm’s earnings. The cost of sales, which encompasses transaction and processing expenses, accounted for 52 percent of revenue, leaving a gross profit of N14.172 billion.

For technology companies like eTranzact, cost of sales goes beyond production. It includes switching fees, settlement and network costs, compliance, third-party fees, fraud prevention, and security expenses. “The payments industry runs on thin margins but enormous throughput,” said Lagos-based technology analyst, Mr. Adebayo Onigbinde. “Maintaining secure servers, databases, and real-time processing systems is expensive. Add bank and card network fees for each transaction, and costs multiply quickly as volume grows.”

Beyond transaction-related costs, eTranzact faced rising administrative and marketing expenses in 2025. Administrative costs surged 51 percent to N9.239 billion, up from N6.156 billion in 2024. Marketing and sales expenses, sometimes referred to as distribution costs, more than doubled to N930.848 million, compared with N424.096 million the previous year.

These expenses left the company with an operating profit of N4.003 billion. However, income from finance activities (N258.899 million) and other sources (N1.244 million) offset finance costs of N19.242 million, bringing profit before tax to N4.241 billion. After paying N1.272 billion in taxes, eTranzact’s profit after tax stood at N2.968 billion, representing a 16 percent decline from the N3.52 billion reported in 2024.

READ ALSO: Zichis Agro proposes 20 kobo dividend, 1-for-1 bonus issue

eTranzact’s results underscore the challenges facing Nigeria’s digital payments sector, where rapid growth in transaction volumes comes with proportionally higher costs. “Tech payment firms must continuously invest in infrastructure and compliance to stay competitive,” Onigbinde noted. “Even modest revenue growth can be offset by higher operational and security costs, which is what we see with eTranzact.”

Investors note that while revenues were steady, margins were under pressure due to escalating expenses. Analysts say this trend reflects broader industry dynamics, including rising bank fees, regulatory compliance requirements, and heightened security demands in digital payments.