The Securities and Exchange Commission (SEC) has reaffirmed its commitment to addressing the ongoing issue of unclaimed dividends, which currently amount to N215 billion, through the implementation of advanced technological solutions and enhanced stakeholder engagement.
This was announced by the Director-General of the SEC, Emomotimi Agama, during the Capital Market Committee meeting held in Lagos on Thursday.
Agama acknowledged the significant challenge posed by the growing volume of unclaimed dividends and outlined the commission’s strategies to reduce this backlog.
He highlighted the importance of technology and streamlined processes in achieving this goal.
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“As of March, the total unclaimed dividends stood at N215 billion. We understand the concerns of investors regarding unclaimed dividends, and as a regulatory authority, we are dedicated to resolving this issue. By introducing a self-service portal and a forthcoming mobile app, investors will have real-time access to their dividends and be able to resolve issues more efficiently.
“We are collaborating closely with registrars and financial institutions to simplify dividend payments. Our aim is to ensure that investors entitled to their dividends can claim them without unnecessary delays,” Agama stated.
The SEC DG also announced the formation of a specialized committee to oversee the resolution of unclaimed dividends and ensure compliance among market operators.
According to Agama, this committee will focus on identifying and addressing the root causes of the delays while recommending strategies for more effective management in the future.
As part of efforts to attract younger generations to the capital market, the SEC chief disclosed plans to develop podcasts and educational apps.
He also mentioned that the commission intends to engage members of the National Youth Service Corps (NYSC) to promote financial literacy and raise awareness of capital market opportunities.
“We are developing a podcast to help the younger generation access and understand the capital market. We will also make use of educational apps, and we will visit NYSC camps to educate the younger generation about the market,” he stated.
Agama reiterated the commission’s determination to encourage more companies to list on Nigerian exchanges, in line with the Federal Government’s goal of achieving a $1 trillion economy.
He noted that by promoting the listing of more companies, the SEC aims to enhance market liquidity and attract new investors, thereby contributing to economic growth.
Agama also emphasized the SEC’s push for the increased adoption of green finance, recognizing its potential to drive long-term economic growth while promoting responsible investment practices.
He further revealed significant progress in the Nigerian capital market for 2024, highlighting the approval of nine new issuances worth N1.228 trillion.
“In the Nigerian capital market for 2024, the commission has so far approved nine new issuances, totaling N1.228 trillion, reflecting increased confidence in the market.
In the fund management sector, the net asset value of registered mutual funds grew by 111.08% to N3.335 trillion, indicating strong and sustainable growth,” he explained.
Reaffirming the SEC’s commitment to investor protection, Agama also mentioned the recent conviction of a Ponzi scheme operator, stating, “This conviction underscores our zero-tolerance policy towards fraudulent schemes. We remain resolute in safeguarding the interests of investors by taking decisive action against market offenders.”
Additionally, the Executive Commissioner of Corporate Services at the SEC, Samiya Usman, reiterated the commission’s dedication to improving the operations for investors in the capital market. “We aim to enhance regulation, and we will strive to make it better for our investors,” she said.
