SEC raises concerns over backlog of unclaimed dividends in Nigeria

Written by on April 8, 2022

The Securities and Exchange Commission (SEC) has raised concern about the market’s high proportion of unclaimed dividends.

This was made known by Mr. Lamido Yuguda, the Director-General of the SEC during the Post Capital Market Committee (CMC) webinar press briefing on Thursday.

Unclaimed dividends, according to him, were caused by multiple subscriptions, in which some investors used various methods to subscribe for more than the allowed amount of shares during public offerings.

Despite the fact that dividends are now issued electronically, Yuguda claims that there is still a large number of unclaimed dividends. He said that the number of unclaimed dividends would plummet if everyone mandated their accounts.

He said the SEC has put a lot of effort into investor education in order to ensure that consumers manage their accounts.

Yuguda said that dividends that had not been claimed over a certain period were being transferred into the trust fund.

According to him, if anyone comes forward at any given time to claim their unclaimed dividend, this fund will be able to repay those dividends without any problems.

The DG said that any investment scheme not registered with the Commission was not a bonafide capital market operator.

He urged investors to always check with SEC to know the licensed operators before investing.

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