AGS NEWS – The Securities and Exchange Commission (SEC) announced on Thursday its efforts to tackle the issue of unclaimed dividends, which currently stand at a value of N190bn.

The total value of unclaimed dividends reached N190bn in August 2023, marking a 7.35% increase from the N177bn recorded in 2021, according to SEC’s latest data.

The apex regulator, responsible for regulating and developing the Nigerian capital market, shared this information with journalists after conducting a three-day investor clinic in Yobe State to address concerns from investors in the region.

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Mr. Danladi Mohammed, the Head of the SEC Zonal Office in Kano, explained that the investor clinic aimed to raise awareness and provide guidance on various initiatives such as e-dividend, dematerialisation of share certificates, and direct cash settlement payment systems.

The event also facilitated handling inquiries and complaints from shareholders in Yobe State and its surroundings.

Mohammed emphasized that the initiative is part of a series of programs and strategies outlined to reduce the level of unclaimed dividends, as highlighted in the Capital Market Development Master Plan 2015–2025.

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SEC Director General, Lamido Yuguda, highlighted the commission’s commitment to addressing the issue of unclaimed dividends during a briefing with the House Committee on Capital Markets and Institutions.

He outlined several efforts and strategies implemented by the commission to tackle the rising trend.

Throughout the three-day event, SEC addressed various complaints from investors, including guidance on e-dividend adoption, name changes, scheme consideration pay-offs, share certificate verification, share transmission, and payment of outstanding dividends.

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Capital market experts attribute the increase in unclaimed dividends to factors such as investors changing residential addresses without updating records, failure to keep track of personal investments, or overlooking investments owned by deceased relatives.