Nigeria: SEC Reports Unclaimed Dividends Surge to N190 Billion Amid Identity Challenges

The Securities and Exchange Commission (SEC) has revealed that the tally of unclaimed dividends within the nation’s capital market has escalated to N190 billion. Speaking during the second post-Capital Market Committee (CMC) media briefing in Abuja on Friday, Mr. Lamido Yuguda, the Director-General of SEC, attributed this upswing to identity management intricacies within the country.

Yuguda highlighted that the amplified figure stemmed from various factors, including multiple subscriptions resulting from banking consolidation and identity management. He emphasized, “We are grappling with historical issues that have exacerbated the unclaimed dividends predicament.”

In addressing this concern, Yuguda elucidated that the commission is collaborating with the Nigeria Inter-Bank Settlement System (NIBSS) to enhance the e-dividend portal. This collaboration aims to streamline electronic dividend processes by upgrading and rectifying the existing portal.

“Our intensive efforts are focused on diminishing the number of unclaimed dividends. Hence, we are partnering with NIBSS to rejuvenate the e-dividend portal, reinstating investors’ rightful dividends and minimizing the volume of unclaimed funds,” he underscored.

Regarding dollar-denominated bonds listed on NGX, the director-general allayed concerns, emphasizing that corporate bonds pose no issues in this context.

He acknowledged the market’s forthcoming challenges while affirming its commitment to actively contribute to ongoing economic reforms. He emphasized the introduction of the Know Your Customer (KYC) requirement to consolidate essential information and urged the market to make collective sacrifices for national economic transformation.

Mr. Yuguda also touched on the Investments and Securities Bill (ISB) 2023, currently under the consideration of the 10th National Assembly. The bill seeks to align regulations with contemporary market dynamics and, if enacted, is anticipated to bolster the capital market’s role in national development.

Highlighting the importance of cybersecurity, he urged market participants to prioritize protective measures to safeguard sensitive financial data and transactions.

Furthermore, Mr. Dayo Obisan, the Commissioner of Operations at SEC, highlighted beneficiaries’ challenges in accessing their dividends as a major issue. He emphasized SEC’s ongoing efforts to encourage investors to update their bank details accurately and claimed dividends appropriately. He acknowledged that despite progress, some investors still provide incorrect details. Mr. Obisan reaffirmed SEC’s dedication to robust data management to effectively tackle unclaimed dividends by capturing all market participants and ensuring seamless dividend transfers.