Unclaimed dividends, representing a substantial sum of N190 billion, have accumulated within the Nigerian stock market, prompting the National Orientation Agency (NOA) to urge Nigerians to take proactive steps to reclaim their rightful funds. These unclaimed dividends, which are essentially cash payments declared by companies for their shareholders but remain uncollected, pose a significant financial challenge for both investors and the overall market. NOA’s initiative underscores the importance of efficient dividend distribution and the need for greater awareness among investors regarding their entitlements. This situation often arises due to a variety of reasons, including outdated contact information, missing bank details, or a lack of awareness on the part of the beneficiaries. To address this issue, the NOA has outlined a clear process for individuals and companies to reclaim their unclaimed dividends.
The process for reclaiming unclaimed dividends, as outlined by the NOA, begins with visiting the Securities and Exchange Commission (SEC) website (https://home.sec.gov.ng). This website provides a comprehensive database where individuals and companies can search for unclaimed dividends linked to their names or company names. This initial step allows individuals to confirm the existence of unclaimed dividends before proceeding further. Upon confirming the presence of unclaimed dividends, the next step involves identifying the registrar responsible for managing the shares in question. This information is readily available on the SEC portal or can be obtained by contacting the relevant company directly. The registrar plays a crucial role in the dividend distribution process and will be the primary point of contact for reclaiming the funds.
Once the registrar has been identified, investors must download the e-Mandate Form. This form can typically be found on the registrar’s website or can be requested directly from the registrar if it’s not available online. The e-Mandate Form serves as the official request for the release of the unclaimed dividends. This form requires accurate completion and attachment of supporting documents. The required documents typically include a passport photograph and a valid form of identification, which are necessary for verification purposes. After completing the form and attaching the required documents, investors should submit it to the registrar either via email or through their bank.
After submitting the e-Mandate Form, it’s crucial to follow up with the registrar to ensure that the form has been received and is being processed. This follow-up can prevent delays and ensure that the claim is handled efficiently. Consistent communication with the registrar throughout the process is recommended. Furthermore, investors have the option to register for e-dividend payments through the NIBSS Self-Service link provided by the Commission or by contacting their registrar or bank. This registration can streamline future dividend payments and prevent them from becoming unclaimed.
The SEC’s directive in July 2023 regarding unclaimed dividends older than 12 years provides further clarity for investors. This directive explicitly instructs all public companies and their registrars to cease treating such dividends as statute-barred, particularly those declared before the enactment of the Finance Act 2020. This directive aims to protect the rights of shareholders to access their unclaimed dividends regardless of the time elapsed. This directive addresses concerns that some companies and registrars were denying shareholders access to their rightful funds based on a misinterpretation of the law. The Finance Act 2020 provides a framework for the management of unclaimed dividends, and the SEC’s directive reinforces the proper application of these provisions.
In conclusion, the NOA’s campaign to raise awareness about unclaimed dividends is a crucial step toward ensuring that investors receive their due entitlements. The clear process outlined by the agency, combined with the SEC’s directive, provides a strong framework for reclaiming these funds. By actively participating in this process, investors can contribute to a more efficient and transparent stock market while also benefiting from their investments. Active engagement from investors, coupled with regulatory oversight, will play a significant role in resolving the issue of unclaimed dividends in the Nigerian stock market. This proactive approach will not only benefit individual investors but also contribute to the overall health and stability of the market.
