SEC Raises Concern Over N170bn Unclaimed Dividends

Director-general of the Securities and Exchange Commission (SEC) Mr Lamido Yuguda has deplored the rising number of abandoned shares and unclaimed dividends in the Nigerian capital market.

He also enjoined investors to mandate their accounts for e-dividend in a bid to reduce the quantum.

Recall that SEC had put the total value of  unclaimed dividends in excess of N170 billion as at December 2020. This figure is estimated to reach N300 billion by 2025 unless the trend is reversed.

The SEC DG said the dividends can actually come directly to the investors’ bank accounts through e-dividend payments. “We will arrange investor clinics to ABU to talk about issues in the capital market and encourage the staff and students to key in. ABU is reputed for giving the very best in tertiary education and some of us are proud graduates of the university,” he stated in a statement that was issued by the commission yesterday.

Yuguda said that the Commission is currently carrying out a number of initiatives which he stated would appeal to younger generation and attract them to the capital market.

According to the DG “Today, people like things they can do on their phones/tablets and that is why we are embracing technology in the capital market. Fintechs are attracting young people to do investments with their phones meanwhile the market still relies on paper documentation. This is really something of the past as we are committed to ensuring that our markets are technology driven. Technology is the way to go and it is the way to really engage people. Once the youths buy an idea, it goes far and wide”.

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