The Securities and Exchange Commission (SEC) has expressed concern as unclaimed dividends in the capital market increased to an estimated N190 billion, stressing that the capital market regulating body is working with key market stakeholders to curb the trend.
Speaking virtually during the second post-Capital Market Committee (CMC) media briefing on Friday, the Director General of the SEC, Mr. Lamido Yuguda, said unclaimed dividend in the capital market has become a serious problem as the commission is consistently facing identity management, multiple subscriptions, and legacy issues that have aggravated in the capital market.
He stated that the commission is working strategically to resolve these issues with the introduction of an electronic dividend (E-dividend) portal.
According to him, both the committee on capital market E-dividend mandate, Institute of Capital Market Registrars (ICMR) and Nigeria Inter-Bank Settlement System (NIBSS) are working on the E-dividend portal to perform better, become user-friendly for the commission to substantially increase the investors experience in terms of uploading required details and also get issue of unclaimed dividends in the capital market significantly reduced.
He said the listing of a dollar-dominated bond initiative by the Nigerian Exchange Limited (NGX) is a welcomed development, maintaining that the obligor must be ready to pay back in foreign currency.
The DG further said the commission is undergoing economic reforms in line with the present administration to reposition the capital market in a move to fund the nation’s quest for major developments.
Yuguda, who chairs the CMC acknowledged the prevailing challenges arising from demanding macroeconomic conditions, constrained consumer spending, and rising operational costs.
Despite these challenges, he noted that there remains a shared sense of optimism that ongoing rigorous reforms will rejuvenate the nation’s economy.
He emphasised the need for resolute support of the capital market to the federal government in navigating these challenges for the country’s brighter future.
He also stated that the road ahead is undeniably challenging and the capital market must step forward in whatever way to lend its helping hand to the current economic reforms, adding that the market must make sacrifices to help drive the economic transformation that will change our nation’s fortunes for the better.
He lamented the trend of companies choosing to de-list from the capital market.
Emphasising the significance of this matter, the SEC boss affirmed that the commission is actively collaborating with the Exchanges to enhance approval procedures, aiming to render listing processes more streamlined, more efficient, and economically viable.
In addition, he revealed that advocacy initiatives were underway to address hurdles related to issuances and to motivate prospective issuers to consider market-based funding options.
