Unclaimed Dividend in Nigeria Hits N190 Billion, SEC Takes Reform Measures

Dayo Obisan, the Executive Commissioner in charge of operations at the Securities Exchange Commission (SEC), disclosed that unclaimed dividends in Nigeria have reached N190 billion.

Obisan made this announcement during the post-Capital Market Committee (CMC) press briefing, held on Friday following the CMC meeting convened on August 24, with a press briefing on August 25.

During the briefing, Lamido Yuguda, the Director General of SEC, shed light on the significant reforms currently underway within the commission.

He stated, “What we are currently doing in the Capital Market are reforms on custody, derivatives, trading, commodities exchange, in-house reforms (regulators) making them more efficient and technology-friendly, crowdfunding, and global advisors.”

Yuguda also emphasized the gravity of the unclaimed dividends issue, attributing it to problems such as identification issues, multiple subscriptions, and the frequent change of company names.

In response, he announced, “We are now tightening our Know Your Customers (KYC) requirements so that all information needed will be fully captured, and these unclaimed dividends will be a thing of the past.”

Addressing concerns about companies listing dollar bonds, Yuguda expressed confidence, stating, “I don’t see any problem with dollar bonds; any bond should be an obligation that is backed by the commitment to pay both principal and interest on the bond.”

In line with the SEC’s commitment to serving investors effectively, Yuguda shared the commission’s intentions to offer products that cater to investor needs. As a result, the Capital Market master plan has undergone revisions.

He commented, “The capital market has a ten-year master plan from 2015-2025. We conducted a midterm review of the plan, which has been instrumental in our achievements, and we continue to build on these successes in 2023.”

These developments reflect the SEC’s dedication to fostering a robust and investor-friendly capital market environment, with a keen focus on addressing the issue of unclaimed dividends and enhancing regulatory efficiency.