Nigeria’s Unclaimed Dividends Hit N170bn — SEC

The Securities and Exchange Commission (SEC) on Friday said that
the total unclaimed dividend in the Nigerian capital market stood
at N170 billion as of December 2020.

Its Director-General, Mr. Lamido Yuguda, disclosed this at the
second post-Capital Market Committee (CMC) virtual news
conference.

Yuguda said the figure had increased when compared with N158.44
billion total unclaimed dividends as of December 2019. He
attributed the rising figure to identity management and multiple
subscriptions of investors.

“We have problems with identity management in the Nigerian
capital market and this is really one of the things the commission
is trying to resolve.

“We have set up a high-powered committee to look at the issue,
people bought shares under false names and multiple
subscriptions.

“There is a problem with the process, but there is a problem
with us too as people because if you are buying securities using
your own wealth; why will you use another persons name, why will
you use a name that will not be traceable to you.

“This became an issue after the introduction of BVN because BVN
is tied only to one name,” Yuguda said.

He noted that the commission in June constituted a Committee on
Identity Management for the Nigerian Capital Market in order to
address the unclaimed dividend issue.

“The committee is chaired by Mr. Aigboje Aig-Imoukhuede and is
expected to harmonise various databases of investors, and
facilitate data accuracy in the market.

“We are optimistic that the outcome of this committee’s
assignment would address the challenges of identity management and
help resolve some of the issues we face in the areas of unclaimed
dividend, direct cash settlement and multiple subscription,” he
added.

On the Electronic Dividend Mandate Management System (e-DMMS)
portal, Yuguda said total number of mandated and approved accounts
from its inception in 2016 to July 2021 stood at 1,144,970. He
explained that the COVID-19 pandemic affected their registration
exercise. Yuguda said members of the CMC had adopted some measures
to increase the number of mandated investors on the e-DMMS and
reduce the quantum of unclaimed dividends in the market. He listed
the measures as; automation for mandating to e-DMMS, increase
monitoring of adherence to procedures and increase awareness
campaigns on the initiative.

The Securities and Exchange Commission (SEC) on Friday said that
the total unclaimed dividend in the Nigerian capital market stood
at N170 billion as of December 2020.

Its Director-General, Mr. Lamido Yuguda, disclosed this at the
second post-Capital Market Committee (CMC) virtual news
conference.

Yuguda said the figure had increased when compared with N158.44
billion total unclaimed dividends as of December 2019. He
attributed the rising figure to identity management and multiple
subscriptions of investors.

“We have problems with identity management in the Nigerian
capital market and this is really one of the things the commission
is trying to resolve.

“We have set up a high-powered committee to look at the issue,
people bought shares under false names and multiple
subscriptions.

“There is a problem with the process, but there is a problem
with us too as people because if you are buying securities using
your own wealth; why will you use another persons name, why will
you use a name that will not be traceable to you.

“This became an issue after the introduction of BVN because BVN
is tied only to one name,” Yuguda said.

He noted that the commission in June constituted a Committee on
Identity Management for the Nigerian Capital Market in order to
address the unclaimed dividend issue.

“The committee is chaired by Mr. Aigboje Aig-Imoukhuede and is
expected to harmonise various databases of investors, and
facilitate data accuracy in the market.

“We are optimistic that the outcome of this committee’s
assignment would address the challenges of identity management and
help resolve some of the issues we face in the areas of unclaimed
dividend, direct cash settlement and multiple subscription,” he
added.

On the Electronic Dividend Mandate Management System (e-DMMS)
portal, Yuguda said total number of mandated and approved accounts
from its inception in 2016 to July 2021 stood at 1,144,970. He
explained that the COVID-19 pandemic affected their registration
exercise. Yuguda said members of the CMC had adopted some measures
to increase the number of mandated investors on the e-DMMS and
reduce the quantum of unclaimed dividends in the market. He listed
the measures as; automation for mandating to e-DMMS, increase
monitoring of adherence to procedures and increase awareness
campaigns on the initiative.