The News Agency of Nigeria reported that the total figure for unclaimed dividends in the Nigerian capital market rose to N158.44 billion by the end of 2019. NAN said it obtained the data containing the figures directly from the Securities and Exchange Commission (SEC).
To further break down the N158.44 billion which it reported, NAN said that unclaimed company dividends for 15 months upwards amount to N119.01 billion. Dividends handled by registrars that remain unclaimed amounts to N14.64 billion. There are also dividends that have remained unclaimed for about 15 months and that amounts to N24.77 billion.
For every six months that a shareholder fails to collect dividends that were paid out, it is registered as unclaimed. The SEC e-dividend registration portal is not utilized, therefore unclaimed dividends continue to rise.
However, Mr Okey Umeano, SEC Head, Office of the Chief Economist told NAN that the primary reason for the growing figure of the unclaimed dividends is unclaimed shares. Dividends already paid to unclaimed shares accounts are over N100 billion according to the SEC head.
SEC said that people who bought multiple shares in different names should regularise their accounts in something it calls forbearance window. This will help reduce the rising number of unclaimed dividends.
Unclaimed shares
This refers to shares bought in other people’s names. Sometimes, the buyer could forget the name of the person they used or in other cases, the person is unaware their name is on a share.
Dividends
A dividend is an amount an investor receives from a company’s earnings as part of their investment. The number of share units a person buys determines what they get as dividends.
Unclaimed dividends
Dividends list as unclaimed when companies payout and an investor doesn’t receive theirs. This is sometimes due to changes in bank details or update made in the stock market.
Follow us on Facebook and Twitter and send us stories on contact@africareinvented.com