Business a.m.
Emomotimi Agama, director general, Securities and Exchange Commission (SEC); Temi Popoola, group chief executive officer, Nigerian Exchange (NGX Group); and Amos Isaac Azi, chairman, Investments and Securities Tribunal, at the second Capital Market Committee meeting in Lagos, recently.
The Securities and Exchange Commission (SEC) has assured that, barring unforeseen circumstances, it will address the issue of unclaimed dividends, which currently stands at N215 billion, by establishing special units to tackle the challenge. This measure, if successful, is expected to yield a significant improvement in the management and accessibility of dividend payments in the Nigerian capital market.
Emomotimi Agama, the SEC director-general, unveiled the development at the Capital Market Committee meeting in Lagos, reigniting hope for the resolution of the persistent issue of unclaimed dividends.
The SEC DG reiterated the commission’s dedication to put an end to the scourge of unclaimed dividends. Standing firm against the rising tide of N215 billion in unclaimed dividends, Agama cast his vote of confidence in advanced technology and dynamic engagement with stakeholders to lead the charge in this battle. He acknowledged the mounting threat of unclaimed dividends, but remained steadfast in outlining the commission’s well-laid plans to vanquish this enemy of financial prosperity.
“As of March, the unclaimed dividend was N215 billion. We recognise the concerns of investors regarding unclaimed dividends, and as a regulatory body, we are committed to ensuring that the issue is addressed. Through the introduction of a self-service portal and an upcoming mobile app, investors will have real-time access to their dividends and be able to resolve challenges more efficiently.
“We are working closely with registrars and financial institutions to streamline dividend payouts. Our goal is to ensure that investors who are rightfully entitled to their dividends can claim them without unnecessary delays.
“We are working on a podcast to enable the younger generation to access and understand the capital market. We will also employ the use of educational apps, and we will go to the NYSC camp to speak with the younger generation about what the market is about,” he stated.
In addition, Agama announced the creation of a specialised committee to oversee the resolution of the unclaimed dividends issue and ensure that market operators comply with relevant regulations. He explained that this committee will focus on identifying and addressing the reasons why unclaimed dividends are not being paid out on time, adding that the committee will also recommend strategies for better management of unclaimed dividends in the future.
Nigeria’s capital market, a sea of possibility with the potential to fuel economic growth, has long been plagued by a restless wave of unclaimed dividends.
In August 2023, the value of unclaimed dividends was estimated at N190 billion, and by March 2024, it had risen to N215 billion. This increase, according to analysts, is a cause for concern as it represents a substantial loss for investors and may deter potential new investors from entering the market.
Capital market experts have identified several reasons for the rise in unclaimed dividends. One reason is that investors may have changed their residential address without updating their records with the registrar or investment company, making it difficult for dividends to be distributed to them. Another reason is that investors may not be keeping track of their personal investments or investments owned by deceased relatives, which can also result in dividends being left unclaimed.
