E-Financial
Unclaimed Dividend: SEC Reads Riot Act to Companies, Registrars
Securities and Exchange Commission (SEC) has warned quoted companies and capital market registrars to desist from selective payments and distribution of dividends.
Mr Lamido Yuguda, director-general of SEC, stated this at the 10th annual conference of the Institute of Capital Market Registrar’s (ICMR) with the theme ‘Reinventing the Nigerian Capital Market for Growth: The Digital Technology Approach’, held in Lagos Saturday.
Yuguda who said that some registrars are unwilling to release the unclaimed dividends in their custody and have employed several antics to frustrate shareholders from enjoying the benefits of the E-DMMS platform, urged the ICMR to encourage its’ members to uphold the Code of Ethics of the profession and as contained in the Rules and regulations of the Commission.
He said “Capital market operators, have a duty to uphold the integrity of the capital market to foster investor confidence as Investors are the greatest assets any capital market has. The Commission would therefore not hesitate to sanction any erring operator in relation to unclaimed dividend or any other issue.”
The SEC DG also stressed the need for optimal regulations of digital technology in the capital market to forestall likely disruptions that could threaten investors’ confidence.
According to him, as much as digital technology is expedient for the growth of the capital market, disruptions could threaten investors’ confidence in the market if digital technology is left unregulated.
Yuguda said the Commission had recognised that if the application of digital technology to financial market practices are not properly regulated, it could lead to outcomes that would threaten investor confidence in our market.
Yuguda noted that in consistence with the position of IOSCO, the commission has been sensitive to the regulatory challenges of a changing technological environment and has sought to balance the benefits of encouraging innovation and the use of new technologies against the need to protect investors and maintain orderly markets.
Yuguda, while noting that the Commission’s priorities are to ensure investor trust and confidence as well as fair, orderly, transparent, and efficient markets, said the Commission had issued rules to regulate several technology-driven activities in the capital market such as crowdfunding, robo-advisory and digital sub-broking.
“To actualise this, we have adopted a three-pronged approach to regulating Digital innovation, which is safety, market deepening and provision of a solution to problems,” he said.
He, however, assured that SEC would continue to ensure that intermediaries harness digital technology in such a way to better serve the needs of investors in all aspects of the capital market and also continue to engage with all stakeholders on new developments in the digital technology space.
“I believe that we all have a common interest in seeing these opportunities harvested, but also in mitigating the risks so that we all can reap the benefits,” he said.
Earlier while in his welcome address, Mr Seyi Owuturo, president/ chairman of Council, ICMR, said the Institute believed that the deliberation was auspicious at a time when the COVID-19 crisis had brought digital transformation in the way companies in all sectors and regions do business.
Owoturo thus said the Institute expects digital technology approach to drive positive outcomes in streamlining processes, harnessing data and shaping entirely new ways of doing business.
Federal Government of Nigeria has signed a Memorandum of Understanding (MoU) with Investonaire Academy to train 100,000 young Nigerians annually in forex trading, financial planning, and risk management.
The agreement, signed in Abuja, was announced by Omolara Esan, Director of Information and Public Relations at the Federal Ministry of Youth Development. According to her, the initiative is part of the government’s broader strategy to reduce youth unemployment and enhance financial inclusion.
At the signing ceremony, Minister of Youth Development, Comrade Ayodele Olawande, described the partnership as a milestone in the ministry’s efforts to equip young Nigerians with practical financial skills. He emphasized that the programme would foster critical thinking, improve digital literacy, and expand access to global economic opportunities.
Speaking on the collaboration, Dr. Enefola Odiba, International Programme Director at Investonaire Academy, highlighted the importance of empowering youth with relevant financial and digital skills. He described young people as essential drivers of innovation and national development.
The ministry assured that the programme would be implemented with transparency and measurable outcomes, ensuring that participants gain practical expertise in forex trading and financial planning.
The Federal Government has recently intensified efforts to boost skill development across various sectors. A separate plan aims to train 100,000 artisans nationwide, following the successful upskilling of 29,000 individuals in previous phases. This initiative seeks to professionalize vocational trades, eliminate quackery, and introduce licensing systems.
Additionally, technicians from specialized institutions will receive industry-standard training to strengthen Nigeria’s labor force and increase self-reliance in skilled professions.
Through these efforts, the government hopes to position Nigerian youth for economic success both locally and globally.
Nigeria Deposit Insurance Corporation (NDIC) has begun the final phase of liquidation for the defunct Premier Commercial Bank, initiating the payment of liquidation dividends to verified creditors, nearly 25 years after the bank’s closure.
Premier Commercial Bank had its operating license revoked by the Central Bank of Nigeria (CBN) on December 20, 2000, following findings of financial instability and regulatory non-compliance.
Since then, the NDIC has overseen the bank’s liquidation process under a winding-up order from the Federal High Court, which designated the corporation as the official liquidator.
In a public announcement, the NDIC invited all eligible creditors to visit any of its zonal offices between June 2 and June 27, 2025, to verify and claim their entitlements.
This move marks a critical milestone in the final settlement of claims related to the bank’s collapse.
To facilitate the verification process, creditors are required to present proof of deposit or shareholding, such as a passbook, chequebook, term deposit certificate, or bank statement.
Additionally, valid identification documents must be submitted, including a driver’s license, international passport, national identity card, NIN slip/card, voter’s card, or a formal identification letter from a traditional ruler or local government chairman.
The NDIC assured the public that the ongoing settlement is part of a broader effort to bring closure to longstanding claims resulting from Premier Commercial Bank’s liquidation. The process, according to the corporation, has been designed to ensure efficient disbursement to all verified stakeholders.
Premier Commercial Bank is one of 53 deposit money banks whose licenses were revoked by the CBN between 1994 and 2018 due to various violations and signs of financial distress.
These closures were followed by legal procedures appointing the NDIC to manage asset recoveries and creditor settlements.
By initiating this final phase of payment, the NDIC is reaffirming its commitment to financial system stability and depositor protection while calling on all affected individuals and institutions to complete verification processes promptly to receive their due compensation.
Securities and Exchange Commission (SEC) has directed all public companies and Registrars to stop treating unclaimed dividends older than 12 years as “statute-barred”, especially those dating from before the enactment of the Finance Act 2020.
The directive reaffirms the provisions of Section 60 of the Finance Act, which mandates that dividends unclaimed for over six years be transferred to the Unclaimed Funds Trust Fund (UFTF), where they remain accessible to shareholders pending claims.
The Commission said that shareholders are entitled to continue to claim their dividends that are not statute-barred (that is not above 12 years) before December 31, 2020 “when the Finance Act 2020, came into effect.”
According to the SEC in a Circular, “The attention of the Securities and Exchange Commission has been drawn to the fact that paying companies and their Registrars have continued to treat unclaimed dividends of public companies that are older than 12 years as being “statute-barred” without recourse to the provisions of the Finance Act 2020.
“In response to various inquiries on the subject, the Commission hereby clarifies as follows: The import of the provisions of Section 60 of the Finance Act 2020 (December 31, 2020), is that, where dividends declared by a public company quoted on the Nigerian Exchange Limited remained unclaimed for a period of six years or more, such dividends are expected to be transferred to the Unclaimed Funds Trust Fund (UFTF) to be held in trust and managed pending when the shareholder presents a claim for such unclaimed dividends.
“Pending the setting up and operationalisation of the UFTF by the Federal Government, pursuant to its powers under Sections 3 (4) (e) and 93 of the Investments and Securities Act 2025, the Commission hereby directs public companies and their Registrars to continue to honour all requests by shareholders for the payment of unclaimed dividends as described above, with effect from December 31, 2020”.
The Commission therefore directed public companies and Registrars to effect immediate compliance with the directive and submit periodic reports on same in the manner prescribed in the Commission’s Rules and Regulations.
Aliko Dangote Signs out @ Dangote Sugar Refinery as Chairman
Court Declines Access Bank’s Request to Freeze MTNN Account over N180Bn Claims
FG Mulls Fibre Optic Layout to Bridge Internet Gaps
Report Reveals New Malware Posing as an AI Assistant Steals User Data
MTN Mulls Establishment of Fintech Firm in Nigeria, Others
News3 days agoCDCFIB Warns against Recruitment Racketeers
General News20 hours agoAfDB to Provide $184.1mfor Africa’s Largest Solar Energy, Battery Storage Project
Telecom3 days agoMeta, FMCIDE Unveil AI Accelerator to Drive Innovation in Nigeria
News3 days agoFG May Forfeits $4m from World Bank Loan over Audit Flop
Telecom3 days agoNigeria Leads the Charge in Green Innovation @MTN’s Africa PachiPanda Challenge
Broadcasting3 days agoAfia TV and Radio Stamps Footprints in Lagos
Telecom2 days agongCERT Issues High Alert to Nigerians Using Android Phones
E-Financial3 days agoNDIC Begins Final Settlements to Creditors of Liquidated Premier Bank