Shareholders have rejected the move to transfer unclaimed dividends to the Central Bank of Nigeria (CBN).

Shareholders under the aegis of Independent Shareholders Association of Nigeria (ISAN) described the attempt to transfer unclaimed dividends to the apex bank as unconstitutional.

“We unequivocally condemn the National Assembly’s recent decision to pass legislation requiring the transfer of all unclaimed dividends from company registrars to accounts managed by the Securities and Exchange Commission (SEC), as opened by the Debt Management Office in the Central Bank of Nigeria (CBN).

“This move is a gross violation of shareholders’ rights, a betrayal of investor trust, and a dangerous precedent that threatens the sanctity of private property and capital market integrity,” ISAN stated.

They highlighted that unclaimed dividends were not government revenue and remained the legal property of individual investors and their heirs, regardless of the time elapsed.

According to them, the attempt to centralise and manage these funds under SEC control is a form of indirect expropriation.

They said the law would shake investor confidence in Nigeria’s capital markets as local and international investors need assurance that their returns would be protected, not confiscated under state pretexts.

“The passage of this law without broad consultations with shareholders, registrars, and capital market stakeholders reflects a disturbing disregard for participatory governance and due process.

“There are no clear frameworks for how the SEC intends to manage these funds, what returns will be offered to rightful owners, or how and when claims will be honored. This is a recipe for bureaucratic mismanagement and corruption.

“Instead of simplifying the claim process for unclaimed dividends, this law adds another layer of opacity and complexity, especially for rural and aging investors who already face hurdles in reclaiming dividends,” ISAN stated.

They called on President Bola Tinubu not to assent to the proposed law and if already signed, such law should be suspended pending judicial review.

“ISAN is mobilising legal resources to challenge this law in court as unconstitutional, unjust, and economically detrimental. We sue for reform, not confiscation. We propose that efforts should focus on reforming the claims process at the registrar level through technology, public education, and standardisation — not through centralization and state seizure.”

“We call on all shareholders to join us in rejecting this injustice. Your dividends are your right — not a government fallback fund. The future of Nigeria’s investment climate must be built on fairness, property protection, and inclusive growth — not arbitrary power grabs,” ISAN stated.