Over N30b unclaimed dividend paid – SEC

The Securities and Exchange Commission (SEC) has stated that the sum of over N30b has so far been paid to investors in the Nigerian capital market from the backlog of unclaimed dividends. The total unclaimed dividend is estimated at N90bn.

As a means to further reduce the unclaimed dividends profile and curb its growth in the country, the Commission has notified the investing public that it will continue to underwrite the cost of E-Dividend enrolment till 30th June, 2017.

According to a statement by the SEC “With a view to ensuring all investors benefit from the E-Dividend programme free of charge, the SEC had committed itself to pay the cost of enrolment throughout the year 2016, and this had resulted in getting about 48% of investors to enroll for the e-dividend payments. Arising from this exercise, over N30 Billion which was hitherto unclaimed have so far been credited to respective Bank Accounts of Investors.

Therefore, the advantage of the e-dividend is not only to enable investors collect subsequent dividends electronically but it allows all accrued dividends be credited to investors’ Bank Accounts.

“The Commission has however observed with concern the challenges being experienced by investors in the course of the e-Dividend registration and therefore commits to further defray the cost of registration till June 30th, 2017 to enable investors continue to enjoy the free registration” the SEC stated.

E-dividend payment platform was introduced to address the rising incidence of unclaimed dividends in the Nigerian capital market.

SEC DG, Mounir Gwarzo had recently said that efforts made by the commission to ensure that the era of stale dividends and huge unclaimed dividends in the market become a thing of the past was already achieving result with the e-dividend registration system.