SEC records N80bn unclaimed dividends

DIRECTOR General of Secu­rities and Exchange Commis­sion (SEC), Mounir Gwazo, has said that Nigeria’s un­claimed dividends are now in the excess of N80 billion.

Speaking during a meeting with management of Nigerian Television Authority (NTA), in Abuja, Gwazo, regretted that these unclaimed dividends are from small stakeholders and that efforts are being made to ensure that they are claimed.

“The issue of unclaimed dividend which according to our records is in the excess of N80billion will also be a thing of the past. These unclaimed dividends came about from dividends of small stakeholders like you and me and we need to ensure that they are claimed.

“Once we are able to get through with the registration process, those dividends that are less than 12 years, once the registrars can certify that the people are the owners, they should be able to pay them. Gradually we should be able to address the problem of un­claimed dividends” he said.

He also disclosed that with Direct Cash Settlement, the era where shares will be sold and the proceeds will be given to the broker who will then pay the client is over as what is obtainable now is that once the shares of an individual are sold, the proceed is paid directly into his bank account. With this, once the client has autho­rized the broker and provided all his details, the proceeds will be paid into the client’s ac­count.

“We have no other place to invest our little funds than in our market and that is why we are trying to cultivate your ap­petite and the only way to do that is to address some of these issues. Once these issues are addressed and the retail inves­tor returns, we will be able to raise participation in the market from 2 per cent it is now to about 4 per cent in the next 10 years.

“The BVN platform that is be­ing provided for the e-Dividend will also enable us to implement other initiatives in the market. For instance with the BVN plat­form everyone that operates in this market as an investor will have his data within this system, so if anyone wants to defraud in this market, it cannot be done. People cannot impersonate oth­ers as the platform will expose them” he added.

He therefore solicited the sup­port of the Management of NTA in partnering with the SEC on its various public enlightenment programmes to ensure that the message gets to Nigerians even at the grassroots.

In a statement, he sought the collaboration of media organiza­tions in the country to ensure effective implementation of the Capital Market Ten Year Master Plan, adding that a successful implementation of the plan is necessary to attract retail inves­tors to the market, address some of the challenges that Nigeria’s Capital market faced during the global capital market crash that occurred in 2008-2010 and also raise the standard of the market.