By Mercy Adewunmi
The issue of unclaimed dividends in Nigeria has become a major concern not just financially, but also in terms of trust in the country’s capital market. This was emphasized by the President of the Senate, Senator Godswill Akpabio, during a one-day Capital Market public hearing in Abuja on Monday. Akpabio, represented by Senator Binos Yaroe, highlighted that unclaimed dividends result in missed opportunities, deferred dreams, and a stagnant economy.
Akpabio stressed the need for bold solutions to address the systemic issues that have plagued the financial sector for too long. He emphasized the potential for Nigeria to become a hub of economic prosperity and wealth creation through a vibrant capital market.
“We cannot afford to let this continue, We must rise to the challenge, confront the complexities, and find bold solutions that will restore faith in our financial systems and empower our investors.
“We stand on a crossroads, where the choices we make Will shape the destiny of our capital market and the future of our nation.
“We have witnessed the exponential growth of unclaimed dividends, a reflection of the systemic issues that have plagued our financial sector for far too long.
“Nigeria endowed with vast resources and a resilient spirit, has the capacity to become a beacon of economic prosperity and opportunity.
“We have the power to transform our capital market into a vibrant hub of investment, innovation and wealth creation.
The Chairman of the Senate Committee on Capital Market, Senator Osita Izunaso, attributed the persistence of unclaimed dividends to challenges in identity management, multiple subscriptions, and historical inadequacies in capturing subscriber information during the era of paper dividend warrants. He acknowledged ongoing reforms in the electronic dividend portal aimed at enhancing functionality and user-friendliness.
Senator Osita noted that, despite these efforts, significant volumes of unclaimed dividends continue to be a concern, even in companies like MTN Nigeria, which underwent a digital offering with extensive documentation. The Federal government’s decision to securitize unclaimed dividends and dormant account balances of up to six years has further heightened concerns.
The history of accessing dividends in Nigeria dates back to the era of paper dividend warrants, which were prone to challenges such as loss, theft, and delay in payment. The shift towards electronic dividend payments was intended to streamline the process and improve efficiency. However, the issue of unclaimed dividends persists due to various factors, highlighting the need for continuous reforms and innovation in the capital market.
Overall, the call for action to address the issue of unclaimed dividends in Nigeria’s capital market is becoming increasingly urgent, as it not only impacts financial growth but also erodes trust and confidence in the investment landscape. The collective efforts of stakeholders, regulators, and policymakers are crucial in overcoming these challenges and restoring faith in Nigeria’s financial systems.
