SEC simplifies process for shareholders of Dangote, MTN, others to claim dividends in days

The Securities and Exchange Commission (SEC) has perfected plans to create an e-dividend portal to help simplify mandating accounts in the capital market.

SEC explained that the procedures to ensure trust in the Collective Investment Scheme (CIS) have raised the fund under management from N1 trillion in 2020 to N2 trillion in 2023.

Unclaimed dividends rise to N190 billion IN 2023 The figure increased to N190 billion in August 2023 from N180 billion in December 2021 and N170 billion in 2020, Legit.ng reported.

The capital market regulator has initiated several measures to eliminate the challenges encountered by investors in claiming their dividends via savings accounts, especially in the introduction of the e-Dividend Management Mandate System.

The initiative was launched in 2015 and is an electronic dividend payment platform enabling an investor’s account to be credited after dividend payment.

SEC also recently inaugurated e-dividend champions for banks and registrars at its Lagos Zonal office, The Guardian reports.

Per the report, the champions will be responsible for sending all shareholders’ complaints on registration to the Nigerian Interbank Settlement System (NIBBS) to clarify the challenges within three days.

Experts X-ray reasons for unclaimed dividends

Experts say rising unclaimed dividends have been linked to a lack of awareness, forgotten investments, multiple subscriptions, and inaccurate identity management, which caused the SEC to deploy measures to check the anomaly.

The commission’s Director-General, Lamido Yuguda, said on Wednesday, November 15, 2023, that SEC was ready to tackle the endless problems of unclaimed dividends.

Yuguda said the portal will become operational in November, boosting efficiency and significantly dropping unclaimed dividends.