Securities and Exchange Commission (SEC) says unclaimed dividends in the capital market have risen to approximately N190 billion.
Gatekeepers News reports that the SEC Director-General, Lamido Yuguda addressed the issue during the second post-capital market committee (CMC) media briefing on Friday.
Yuguda identified challenges in identity management within the country as a significant factor leading to the uptick in unclaimed dividends.
He further explained that the prevalence of multiple subscriptions and complexities in identity management processes have also contributed to the surge in numbers.
“The issue of unclaimed dividends, why is it happening? Unclaimed dividends have become a very serious problem in our country because we have issues with identity management within the capital market. We have issues with multiple subscriptions,” Yuguda said.
“People were using different names to subscribe to share offerings. We had situations where not information was captured about individual subscribers. Then, a lot companies changed their names.
“We have had legacy issues that have aggravated the problem of unclaimed dividends.”
Yuguda said the commission is actively working on resolving these challenges through the implementation of an electronic dividend (e-dividend) portal.
He explained that the committee on the capital market e-dividend mandate, along with the Institute of Capital Market Registrars (ICMR) and the Nigeria Inter-Bank Settlement System (NIBSS), is collaborating on creating a user-friendly e-dividend portal.
This collaborative effort aims to enhance the uploading of necessary information and improve the overall experience for investors, ultimately addressing the issue of unclaimed dividends in the capital market.
Regarding the proposal by the Nigerian Exchange Limited (NGX) to allow companies to list dollar-denominated bonds, Yuguda expressed his support, stating that any bond should be backed by the obligation to pay both principal and interest.
He emphasized that the commission is currently undergoing reforms aligned with the present administration’s vision to position the Nigerian capital market as a global investment hub.
