SEC vows to address N215bn unclaimed dividends

The Securities and Exchange Commission has reiterated its commitment to resolving the lingering issue of unclaimed dividends, which currently stands at N215bn, through the deployment of advanced technology solutions and improved stakeholder engagement.

This was disclosed by the Director-General of the Securities and Exchange Commission, Emomotimi Agama at the Capital Market Committee meeting in Lagos on Thursday.

He acknowledged the challenge posed by the mounting unclaimed dividends and outlined measures being taken by the commission to reduce this backlog.

He emphasised the role of technology and seamless processes in achieving this objective.

“As of March, the unclaimed dividend was N215bn. We recognise the concerns of investors regarding unclaimed dividends, and as a regulatory body, we are committed to ensuring that the issue is addressed. Through the introduction of a self-service portal and an upcoming mobile app, investors will have real-time access to their dividends and be able to resolve challenges more efficiently.

“We are working closely with registrars and financial institutions to streamline dividend payouts. Our goal is to ensure that investors who are rightfully entitled to their dividends can claim them without unnecessary delays,” Agama stated.

The SEC DG also announced the establishment of a specialised committee to oversee the resolution of unclaimed dividends and ensure compliance among market operators.

According to Agama, this committee will focus on identifying and addressing the root causes of the delays while recommending strategies for more effective management in the future.

As part of efforts to attract the younger generation to the capital market, the SEC boss disclosed plans to develop podcasts and educational apps, adding that the commission was planning to engage the National Youth Service Corps members to promote financial literacy and awareness of capital market opportunities.

“We are working on a podcast to enable the younger generation to access and understand the capital market. We will also employ the use of educational apps, and we will go to the NYSC camp to speak with the younger generation about what the market is about,” he stated.

The SEC DG reiterated the commission’s determination to encourage more companies to list on Nigerian exchanges, in line with the Federal Government’s $1tn economy target.

According to Agama, by promoting the listing of more companies, the commission believes it can enhance market liquidity and attract new investors, thereby, contributing to the growth of the economy.

He noted that the SEC was pushing for increased adoption of green finance, recognising its potential to drive long-term economic growth while promoting responsible investment practices.

Agama also revealed strides in the Nigerian capital market for 2024, highlighted by the approval of nine new issuances worth N1.228tn.

“In the Nigerian capital market for 2024, the commission has so far approved nine new issuances, totalling N1.228tn, reflecting increased confidence in the market. In the fund management space, the net asset value of registered mutual funds grew by 111.08 per cent to N3.335tn, indicating strong and sustainable growth,” he explained.

Reaffirming the SEC’s commitment to investor protection, Agama also referenced the recent conviction of a Ponzi scheme operator, stating, “This conviction underscores our zero-tolerance policy towards fraudulent schemes. We remain resolute in safeguarding the interests of investors by taking decisive action against market offenders.”

Also, the Executive Commissioner of Corporate Services, SEC, Samiya Usman, reaffirmed the commission’s dedication to enhancing the operations of investors in the capital market.

“We want the regulation to be better and we will try to make it better for our investors,” she said.