The Securities and Exchange Commission (SEC) announced that the unclaimed dividend figure has risen to N190 billion from N170 billion recorded as at December 2020.
At a Virtual post Capital Market Committee (CMC) Meeting
held yesterday, the Director General of the SEC, Lamido Yuguda, linked the
rising figure to irregularities in identity management and multiple
subscriptions from investors.
However, Yuguda stated that while the committee constituted
by the SEC on identity management is working tirelessly to harmonise various
databases of investors and facilitate data accuracy in the market, investors on
their part have failed to claim their dividend.
According to him, the committee is expected to address the
challenges of identity management and help tackle some of the issues of
unclaimed dividends, direct cash settlement and multiple subscription.
Yuguda said: “The major issue causing rising unclaimed
dividend is the owners not having access to them.”
As much as efforts are made by the regulators to ensure the
figure is reduced, we keep putting efforts towards making sure that investors
come forward to claim their dividend and update their account.
“This would help reduce the figure and ensure that future
dividend and benefits get transmitted into the account quickly on a quarterly
basis and every investor in the capital market is rightly accounted for to make
our database more robust and help us in planning.”
He restated commitment towards ensuring that the commission
strengthens its infrastructure base, noting that technology plays a major role
in enabling the nation’s capital market attain its full potentials.
To this effect, he said the SEC has concluded arrangement to
roll out a technology infrastructure that would help strengthen its regulatory
function in the capital market by the beginning of 2024.
He re-mphasised the need for government to prioritise the
market as the most reliable medium to finance critical infrastructure, which
already, is severally identified as the most challenging factor in doing
business in the country.
Yuguda stated that the capital market provides variety of
financing instruments that would help to facilitate their respective
infrastructure projects.
“We need to harness the capital market to fund critical
infrastructure that will stand the test of time and prepare Nigeria for the
kind of population being forecasted for the country. We are likely to have a
surge in our population in the next 30 years.
“We need to make necessary investment in infrastructure so
that Nigeria will be prepared to confront this demography so that the youth
will also capitalise on this to remain in the country and the capital market is
well positioned to play a role in this developmental match,” he said.
In a related development, Yuguda, while briefing journalists
at the 2nd 2023 Capital Market Committee (CMC) meeting in Abuja, noted that 90
percent of the N190Bn unclaimed dividend is deposited with the payee companies
while the remaining 10 percent could be traced to the registrars.
He noted that despite the challenges, the Commission
recorded a remarkable 5.23 percent surge in market recapitalisation at the
Nigerian Stock Exchange (NGX) soon as President Bola Ahmed Tinubu was sworn-in
as Nigeria’s President in May, 2023, which was driven by optimistic
anticipation of market reforms.
Yuguda, who doubles as the Chairman of the CMC meeting said,
“We acknowledge the prevailing challenges arising from demanding macroeconomic
conditions, constrained consumer spending and rising operational costs. Despite
these challenges, there remains a shared sense of optimism that ongoing
rigorous reforms will rejuvenate the nation’s economy.”
He emphasised the need for a resolute support of the Capital
Market for the Federal government by navigating these challenges for the
country’s brighter future.
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