More Work for SEC, Others as Unclaimed Dividends Hit N121bn

The Securities and Exchange Commission (SEC) has to step up its ongoing efforts aimed at tackling the issue of unclaimed dividends in the nation’s capital market going by the statistics released by the apex regulator.

Information extracted from the SEC Statistical Bulletin, which was released last week, put the total unclaimed dividends as at March 2017, at N121.4 billion. The commission, in collaboration with the Central Bank of Nigeria (CBN), Nigeria Interbank Settlement System (NIBSS) and other market stakeholders had in late 2015, launched Electronic Mandate Management System (E-DMMS) platform. The platform allows shareholders to receive dividends directly into their bank accounts.

Although investors are registering for the e-dividend, the latest information showed that more still needs to be done as about N121.4 billion unclaimed dividends are still in the market.

A breakdown of the dividends showed that about N21 billion are less than 15 months, N11.2 billion with registrars and N89.1 billion with the companies.

The amount was N84.4 billion in December 2012; it dropped to N73.7 billion in 2013 but rose to N98.7billion in 2014. The figures hit a high of N102 billion in June 2015 before it reduced to N98.1 billion in December of the same year. However, it climbed to N117.2 billion in December 2016 and N121.4 billion as at March this year.

As part of efforts to discourage issuance of physical dividend warrants, SEC had declared that as from January next year, shareholders would only receive e-dividends. The deadline was actually extended from July 2017 to January 2018.

However, while stakeholders commended the efforts by the regulator, they said there is the need for more awareness creation among investors so that that registrar for e-dividends.

For instance, the Chairman of Ibadan Zone Shareholders Association, Mr. Eric Akinduro, said: “The extension is a very good and welcome development particularly considering the number of shareholders that we have in this country. However, the extension alone is not enough. SEC should embark on intensive awareness creation particularly to the grassroots investors. In this market we have two types of investors informed and uninformed. SEC should create an enabling environment for the uninformed to be informed and key into the e-mandate system.”

Mrs. Bisi Bakare of Pragmatic Shareholders of Nigeria said we need to do more of enlighten-

ment, especially in the rural areas.

“Before now, most investors were civil servants, who have retired to their villages or changed addresses. The regulator should collaborate with other stakeholders and do more enlightenment for a more efficient result,” Bakare said

According to him, the commission should partner shareholders groups to reach their members at grassroots level.

Mr. Anthony Omojola of Independent Shareholders Association of Nigeria (ISAN) said the regulator should embark on an enlightenment using radio, town hall meetings and other means across the country.

“This can be done through partnership and collaboration with other market stakeholders. If the enlightenment is not intensified, the extension will not lead to any significant benefit. Apart from shareholders, most banks’ staff needs enlightenment too because many of them do not understand the workings of the e-dividend platform.