Registrars indicted over unclaimed dividends as figure rises by 94% in 24 years | The Guardian Nigeria News

Unclaimed dividends figure in the Nigeria capital market has risen by over 94 per cent in the last 24 years. Efforts to stem the rising figure have continued to hit bricks. In 1999, it was about N2 billion, rising steadily to N8 billion in 2008, N41 billion in 2011, N60 billion in 2013, and N80 billion at the end of 2014.

Dematerialisation, which is the conversion of a share certificate from physical to electronic form, and credited to the investor’s Central Securities Clearing System Limited account adopted fully by the regulator in 2015 to help tackle the problem, has not helped much, as the failure of registrars to fully adopt the electronic processing technology is another disincentive to market investors.

“We are not surprised that the figure has not been reduced. The reason is the lack of political will and sincerity by major players in the industry in confronting the issue, especially in probate issues and the cumbersome process of claim. Matters are made worse when investors realise that the cost of procuring a letter of administration, publication, registrar charges and bank charges are higher than the value of the dividend to be claimed.

President of the Ibadanzone Shareholders Association, Eric Akinduro blamed the rising figure on SEC’s failure to ensure that parties responsible for the processing of the unclaimed dividends adhere strictly to regulatory rules and requirements. “The regulator should adopt a robust technology infrastructure that would link all the parties in the value chain to monitor the activities of each party. This would help them to know how many requests of dividend claims are processed from time to time.

“There is an urgent need to reassess and investigate the unclaimed dividends value chain to identify what the issues are. SEC should work closely with stakeholders involved in the processing and deploy the right technology to tackle the problem. Why should newly listed entities like MTN, Airtel or SAHCO have unclaimed dividends list,” he queried.

Source: News Formal (newsformal.com)

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