by 
Chairman, Association of Securities Dealing Houses of Nigeria, Onyewechukwu Ezeagu warns that handing unclaimed dividends to the FG will “disincentive savings”.
Over half the amount of unclaimed dividends will probably never be claimed by anyone akin to the origin of the issue.
Each year, companies declare the same unclaimed shares along with the dividend amounts that are now nearing N200 billion in Nigeria.
- List of Unclaimed Dividends – How to Collect Them
- Major NSE Index – An Overview and Explanation of the Topic
Unclaimed dividends currently remain in the custody of Nigerian company registrars. However, the FG is proposing to set up a repository trust fund to manage them.
Apparently, market experts are not buying the idea. They have rejected the proposal to hand unclaimed dividends in Nigeria over to the government, hence the debates arising.
To begin with, unclaimed dividends belong to the companies who paid them not the government. If a bill goes into effect, the FG will personify dividends which they have no share in and owe shareholders for life.
- The Parallel Market Should Not Determine Naira Exchange Rate – CBN
- Non-Oil Sector in Nigeria – Finance, IT, Agriculture – Takes Q3 2020 GDP
Being the custodian of investors in the market, the Securities and Exchange Commission, SEC is able to control the growing amount of unclaimed dividends in Nigeria.
This is why it is important that the commission maintain that registrars return these dividend balances to the paying companies. They will put the money in reserve which serves a benefit both to these companies and the stock market.
E-dividend Mandate Form for Unclaimed Dividends in Nigeria
There are a few measures in place as arranged by capital market operatives to address unclaimed dividends.
- The e-dividend portal and e-mandate form allows people to see if there are any unclaimed dividends in their name.
Follow us on Facebook and Twitter and send us stories on contact@africareinvented.com
