12. Dividends

Dividends are paid once a year. Each dividend is shown gross, then net of 5% withholding tax (for both schemes, per the term sheet).

12.1 Declare a dividend

Who can do this: CSA, PA or FEO (Valuation roles).

1. Open Investment schemes, then the Dividends tab.
2. Select Declare a dividend.
3. Fill in:
   • Scheme.
   • Period, for example "FY2026 interim".
   • Dividend per unit (₦).
   • Record date. This cannot be in the future. Holders on this date are included.
   • Payment date. This cannot be before the record date.
4. Select Save.

Who is paid: the payout lines are fixed when the dividend is declared. They include members who are ACTIVE or SUSPENDED and who held units on the record date. At least one holder is needed.

Each payout line is calculated like this:

Net = gross − withholding tax, where withholding tax is rounded half up to the kobo.

12.2 Approve or reject a dividend

Who can do this: a Finance Approver (FA). The approver cannot be the person who declared it.

1. Open the Dividends tab.
2. Find the dividend under "Awaiting approval".
3. Select Approve or Reject.

What happens next

• On approval: the person who declared it and the FEO are told. Each member is told: "Dividend declared: …", with gross, withholding tax, net and the payment date.

12.3 Record the payout

Who can do this: a Finance maker (CSA, PA or FEO), with MFA.

1. Open the Dividends tab.
2. Find the approved dividend and select Record payout.
3. Type the Custodian payment reference.
4. Select Save.

What happens next

• A disbursement is created for the gross amount.
• The ledger shows: debit {code}-DISTRIBUTABLE. Credit {code}-CUSTODY for the net amount, and {code}-WHT for the tax.
• The disbursement waits for an FA to approve it in Transactions.
• After approval, the dividend status becomes PAID. Each member is told: "Dividend paid: {period}", with gross, withholding tax and net.
• If the payout is reversed, the dividend goes back to APPROVED.

Worked example: Musa's dividend (SCAFI)

Musa holds 600 units on the record date. The dividend is ₦20 per unit.

Step	Calculation	Amount
Gross	600 units × ₦20	₦12,000
Withholding tax at 5%	₦12,000 × 5%	− ₦600
Net paid to Musa	₦12,000 − ₦600	₦11,400

Dividend statuses: PENDING_APPROVAL, APPROVED, REJECTED, PAID.

Dividend history columns

Reference, Scheme, Period, Per unit, Gross, WHT, Net, Paid, Status.

Common problems

Problem	What to do
"At least one holder is needed"	No member held units on the record date. Check the record date.
The declarer cannot approve	This is the rule. Ask a different FA.
A member is missing from the payout	They did not hold units on the record date. Check the unit register.