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The Securities and Exchange Commission (SEC) has reaffirmed its commitment to tackling the growing issue of unclaimed dividends, which have now reached N215 billion. This effort will be driven by the deployment of advanced technology solutions and enhanced stakeholder engagement.
This was announced by the Director-General of the SEC, Emomotimi Agama, during the Capital Market Committee meeting held in Lagos on Thursday.
Acknowledging the significant challenge posed by the accumulation of unclaimed dividends, Agama outlined the measures being taken by the commission to reduce this backlog, emphasizing the critical role of technology and streamlined processes.
“As of March, unclaimed dividends totaled N215 billion. We recognize the concerns of investors regarding these unclaimed funds, and as a regulatory body, we are dedicated to resolving this issue. The introduction of a self-service portal and an upcoming mobile app will provide investors with real-time access to their dividends, enabling them to resolve any challenges more efficiently,” Agama stated.
He further elaborated on the SEC’s collaboration with registrars and financial institutions to simplify dividend payouts. “Our goal is to ensure that investors entitled to their dividends can claim them without unnecessary delays,” he added.
In addition, Agama announced the formation of a specialized committee tasked with overseeing the resolution of unclaimed dividends and ensuring compliance among market operators. This committee will focus on identifying and addressing the root causes of delays and will recommend strategies for more effective management moving forward.
As part of efforts to attract the younger generation to the capital market, the SEC is developing podcasts and educational apps. Agama also revealed plans to engage National Youth Service Corps (NYSC) members in promoting financial literacy and raising awareness of capital market opportunities.
“We are working on a podcast to help the younger generation access and understand the capital market. We will also utilize educational apps and will visit NYSC camps to educate young people about the market,” he said.
The SEC DG also reiterated the commission’s determination to encourage more companies to list on Nigerian exchanges, aligning with the Federal Government’s $1 trillion economy target. He expressed confidence that increasing the number of listed companies would enhance market liquidity and attract new investors, thereby contributing to the growth of the economy.
Agama noted the SEC’s push for the increased adoption of green finance, recognizing its potential to drive long-term economic growth while promoting responsible investment practices.
Additionally, Agama highlighted significant developments in the Nigerian capital market for 2024, including the approval of nine new issuances worth N1.228 trillion. “In 2024, the commission has approved nine new issuances totaling N1.228 trillion, reflecting increased confidence in the market. In the fund management sector, the net asset value of registered mutual funds grew by 111.08 percent to N3.335 trillion, indicating strong and sustainable growth,” he explained.
Reaffirming the SEC’s commitment to investor protection, Agama cited the recent conviction of a Ponzi scheme operator as evidence of the commission’s zero-tolerance policy toward fraudulent activities. “This conviction underscores our commitment to safeguarding investors’ interests by taking decisive action against market offenders,” he stated.
Also speaking at the event, the SEC’s Executive Commissioner of Corporate Services, Samiya Usman, reiterated the commission’s dedication to improving the experience of investors in the capital market. “We are committed to enhancing regulations to better serve our investors,” she affirmed.
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