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SEC Challenges Nigerians on E-dividend Registration



  • SEC Challenges Nigerians on E-dividend Registration

The Securities and Exchange Commission (SEC) has urged Nigerians to take advantage of the ongoing e-dividend registration to reduce unclaimed dividends profile and increase liquidity in the capital market and economy.

The Acting Director-General of SEC, Ms Mary Uduk, made the plea at a Town Hall meeting on e-dividend and contemporary issues in the Nigerian Capital Market on Thursday in Enugu.

The theme was: “Current Initiatives by the Securities and Exchange Commission (SEC) Nigeria to Enhance Investor Value.’’

The meeting was attended by investors, stock brokers, state government officials, bankers, insurance brokers, the media and traders from various markets across the state.

Uduk, represented by the Head, Port Harcourt Zonal Office of SEC, Mr Obi Adindu, said, “SEC is currently leading the entire capital market industry in an effort to migrate all shareholders to an e–dividend regime’’.

According to her, the essence of E-Dividend Mandate Management System is to eradicate or reduce to the barest minimum the incidence of unclaimed dividends.

“Unclaimed dividend is an undesirable feature of the Nigerian capital market which denies investors and shareholders the gains of participating in the capital market.

“It denies the economy access to the huge amount of money which should have accrued to shareholders and would have gone into circulation to oil the wheel of the economy.

“It is a consequence of the bottlenecks which are inherent in the erstwhile paper dividend warrant regime such as postal system inefficiency, change in investors’ addresses, poor fidelity and human fallibility in dividend payment processes,’’ she said.

Uduk said that the e-dividend regime bypasses these limitations of paper-dividend by ensuring that dividends which do not exceed 12 years of issue were credited directly to an investors’ account after declaration by the paying company.

The acting director-general, who said that the e-dividend registration exercise started on Nov. 23, 2016, noted that between the time and March 31, 2018, the commission underwrote the registration cost for all investors that mandated.

“It is my pleasure to let us know, that a total of 2.4 million accounts had been mandated already,’’ she said.

Uduk also said that SEC was implementing various initiatives aimed at making our market deeper, vibrant and more effective.

“The forbearance window for shareholders with multiple subscriptions had been extended by another year from the Dec. 31, 2018 deadline previously communicated.

“Consequently, we enjoin those who have not come forward for the regularisation of shares purchased with multiple identities, to do so,’’ she said.

The acting director-general said that the commission had developed a two-pronged approach to addressing the intractable challenges associated with transmission of shares related to the estate of deceased investors.

“The first step will involve engagement with and enlightenment of the Probate Registry with a view to providing solutions to the cumbersome process of transmitting shares.

“Secondly, rules would be developed around the time-frame for transmission shares and the fee structure,’’ she said. (NAN)

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.

Crude Oil

A Loud Blast Heard in Dhahran, Saudi Arabia’s Largest Crude Oil Production Site



Loud Blast Heard in Dhahran, Saudi Arabia’s Largest Crude Oil Production Site

Two residents from the eastern city of Dhahran, Saudi Arabia, on Sunday said they heard a loud blast, but they are yet to know the cause, according to a Reuters report.

Saudi’s Eastern province is home to the kingdom’s largest crude oil production and export facilities of Saudi Aramco.

A blast in any of the facilities in that region could hurt global oil supplies and bolster oil prices above $70 per barrel in the first half of the year.

One of the residents said the explosion took place around 8:30 pm Saudi time while the other resident claimed the time was around 8:00 pm.

However, Saudi authorities are yet to confirm or respond to the story.


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Crude Oil

Brent Crude Oil Approaches $70 Per Barrel on Friday



Crude oil

Nigerian Oil Approaches $70 Per Barrel Following OPEC+ Production Cuts Extension

Brent crude oil, against which Nigerian oil is priced, rose to $69 on Friday at 3:55 pm Nigerian time.

Oil price jumped after OPEC and allies, known as OPEC plus, agreed to role-over crude oil production cuts to further reduce global oil supplies and artificially sustain oil price in a move experts said could stoke inflationary pressure.

Brent crude oil rose from $63.86 per barrel on Wednesday to $69 per barrel on Friday as energy investors became more optimistic about the oil outlook.

While certain experts are worried that U.S crude oil production will eventually hurt OPEC strategy once the economy fully opens, few experts are saying production in the world’s largest economy won’t hit pre-pandemic highs.

According to Vicki Hollub, the CEO of Occidental, U.S oil production may not return to pre-pandemic levels given a shift in corporates’ value.

“I do believe that most companies have committed to value growth, rather than production growth,” she said during a CNBC Evolve conversation with Brian Sullivan. “And so I do believe that that’s going to be part of the reason that oil production in the United States does not get back to 13 million barrels a day.”

Hollub believes corporate organisations will focus on optimizing present operations and facilities, rather than seeking growth at all costs. She, however, noted that oil prices rebounded faster than expected, largely due to China, India and United States’ growing consumption.

The recovery looks more V-shaped than we had originally thought it would be,” she said. Occidental previous projection had oil production recovering to pre-pandemic levels by the middle of 2022. The CEO Now believes demand will return by the end of this year or the first few months of 2022.

I do believe we’re headed for a much healthier supply and demand environment” she said.

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Crude Oil

Oil Jumps to $67.70 as OPEC+ Extends Production Cuts




Oil Jumps to $67.70 as OPEC+ Extends Production Cuts

Brent crude oil, against which Nigerian oil is priced, rose to $67.70 per barrel on Thursday following the decision of OPEC and allies, known as OPEC+, to extend production cuts.

OPEC and allies are presently debating whether to restore as much as 1.5 million barrels per day of crude oil in April, according to people with the knowledge of the meeting.

Experts have said OPEC+ continuous production cuts could increase global inflationary pressure with the rising price of could oil. However, Saudi Energy Minister Prince Abdulaziz bin Salman said “I don’t think it will overheat.”

Last year “we suffered alone, we as OPEC+” and now “it’s about being vigilant and being careful,” he said.

Saudi minister added that the additional 1 million barrel-a-day voluntary production cut the kingdom introduced in February was now open-ended. Meaning, OPEC+ will be withholding 7 million barrels a day or 7 percent of global demand from the market– even as fuel consumption recovers in many nations.

Experts have started predicting $75 a barrel by April.

“We expect oil prices to rise toward $70 to $75 a barrel during April,” said Ann-Louise Hittle, vice president of macro oils at consultant Wood Mackenzie Ltd. “The risk is these higher prices will dampen the tentative global recovery. But the Saudi energy minister is adamant OPEC+ must watch for concrete signs of a demand rise before he moves on production.”

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