SEC DG engages Securities Dealing Houses in Nigeria to address N190 billion unclaimed dividends

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The Acting Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has urged the Association of Securities Dealing Houses of Nigeria (ASHON) and other key stakeholders in the capital market to collaborate with the Commission in addressing the substantial issue of unclaimed dividends, which currently stands at a staggering N190 billion.

During a meeting with ASHON held in Abuja, Agama described unclaimed dividends as a “monster” in the capital market that requires immediate and decisive action.

According to a statement from the Commission on Wednesday, he emphasized the need for swift measures to tackle this issue, alongside other market-related challenges.

SEC seeks practical proposals

The acting DG further emphasized that the Commission would address these challenges in the shortest time possible and invited ASHON to submit practical proposals on how to reduce the current level of unclaimed dividends.

The SEC boss pledged to give their best efforts to eliminate all forms of infractions in the market, work towards broadening the market for the overall benefit of the economy, and achieve substantial success for Nigeria’s economic growth.

The statement read in part: “Dr Agama assured that every unresolved issue ranging from unclaimed dividends, which is the big Elephant in the room, time to market and other related market issues will be addressed in the shortest time possible.

He assured the association that every good thought that they have had will be brought to fruition while inviting the Association to forward a practical proposal on how they are going to deal with the current level of unclaimed dividends.”

More Insights

Shareholders under the aegis of the New Dimension Shareholders Association of Nigeria recently called on the new Acting Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, to find a lasting solution to the rising wave of unclaimed dividends in the country.

  • President of the New Dimension Shareholders Association, Mr. Patrick Ajudua, speaking to Nairametrics exclusively, said unclaimed dividends have defiled all logic and have kept on rising to over N190 billion despite the recently established Unclaimed Dividend Trust Fund.
  • The total value of unclaimed dividends according to SEC has risen to N190 billion, representing a 7.35% rise from N177 billion recorded in 2021, which was the last figure from the commission.
  • Nairametrics earlier reported that the Securities and Exchange Commission (SEC) plans to conduct a series of investor clinics across the country in 2024. The clinic will address investors’ grievances and concerns regarding unclaimed dividends and related issues.
  • It is also a strategic move to enhance investment inflows into the capital market and tackle the persistent challenge of unclaimed dividends.
  • The SEC boss recently stressed the need to embrace technology as one of the ways of ensuring that the issue of unclaimed dividends in the capital market becomes a thing of the past.

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Source link: Nairametrics

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