Mr. Lamido Yuguda, the Director-General of SEC, made this announcement during the second post-Capital Market Committee (The Securities and Exchange Commission (SEC) has revealed that the amount of unclaimed dividends in the country's capital market has reached N190 billion. CMC) media briefing in Abuja on Friday.
He attributed the increase in unclaimed dividends to issues related to identity management in the country. The figure has also risen due to multiple subscriptions by investors during banking consolidation and identity management. Yuguda emphasized that there are legacy issues exacerbating the problem of unclaimed dividends.
Yuguda mentioned that the commission is collaborating with the Nigeria Inter-Bank Settlement System (NIBSS) on the e-dividend portal. He further explained that the SEC is working with NIBSS to upgrade and repair the electronic dividend portal to address the issue.
"We are working very hard to ensure we reduce the number of unclaimed dividends. This is why we are upgrading the e-dividend portal with NIBSS to restore investors' dividend and reduce unclaimed dividends. We reiterate that every person who has come to the capital market and invested money should be able to get his dividends as and when due," he stated.
Regarding dollar-denominated bonds listed on the Nigerian Exchange Group (NGX), the Director-General clarified that it is not an issue as long as it is a corporate bond. He acknowledged the challenges ahead for the market but expressed confidence that the capital market will contribute to the ongoing economic reforms.
The Know Your Customer (KYC) requirement was introduced to gather necessary information, and the director-general stressed that the market needs to make sacrifices to drive economic transformation for the nation's betterment.
He informed that the Investments and Securities Bill (ISB) 2023 is under consideration by the 10th National Assembly. The bill aims to modernize market regulations to enhance the capital market's contribution to national development.