The Securities and Exchange Commission (SEC) has intensified efforts to mitigate the level of unclaimed dividends in the Nigerian capital market, aiming to alleviate the financial burden faced by investors.
Speaking to journalists after a three-day investors clinic held in Yobe State, Mr. Danladi Mohammed, Head of the SEC Zonal Office in Kano, revealed that the commission is implementing strategies to address the issue of unclaimed dividends.
The investor clinic, organized jointly by the Securities and Exchange Commission and the Gombe State Investment and Property Development Company, focused on assisting investors with unclaimed dividends and related matters. It aimed to raise awareness on e-dividend, dematerialization of shares certificates, and direct cash settlement payment system, among other initiatives.
Mr. Mohammed emphasized that the initiative is part of a series of programs and strategies aimed at reducing the level of unclaimed dividends, which stood at N190 billion in August 2023. The objective is to create awareness, particularly in various regions, encouraging the investing public to claim what rightfully belongs to them.
SEC Director-General, Lamido Yuguda, highlighted the commission’s commitment to regulating and developing the capital market in Nigeria. He reiterated the importance of investor clinics, providing platforms for investors to benefit from capital market investments.
During the three-day event, the SEC addressed numerous complaints from investors, including inquiries on e-dividend adoption, change/reconciliation of names, verification of share certificates, transmission of shares, and payment of outstanding dividends.
Experts in the capital market attribute the rise in unclaimed dividends to various factors, including changes in residential addresses by investors, failure to update records with registrars or investment companies, and inadequate tracking of personal investments or investments owned by deceased relatives.
The SEC’s proactive measures underscore its dedication to fostering transparency, efficiency, and investor confidence in the Nigerian capital market.
