Senate begins Verification of Status of N90 Billion unclaimed Dividends

Senate has set in motion moves for the verification of the status of the N90 billion unclaimed dividends warehoused by companies. This is preparatory to enacting a law that would introduce e-dividends to ensure that accounts of investors were credited within 24 hours.

Speaking in Abuja while declaring open a one- Day Public hearing organised by  Senate Committee on Capital Market, Senate President Bukola Saraki said that he was aware of the recent initiative of the Securities and Exchange Commission (SEC), in introducing the e-dividend policy to ensure that accounts of investors were credited directly within Twenty-Four (24) hours after the declaration of the dividends by listed  companies in the Nigerian Stock Exchange.
Represented by the Senate Leader, Senator Ahmad Lawan, Senate President Saraki said, “the issue of unclaimed dividends remains quite critical as it has endangered the progress of the Nigeria Capital Market; an issue among others that has eroded Investor’s confidence.
“Investments in the area of shares have dropped abysmally and dividends accruing to investors have come to zero thereby discouraging a lot of new investors from buying shares. The attendant economic and social effects of this development can best be imagined.
“It is therefore on this premise that the Senate at its Plenary Session on the 8th Day of November, 2016, considered and deliberated a motion moved by Senator Muhammad Shittu seeking the “Need to Determine the Status of Unclaimed N90 Billion Dividends in Securities for Nigerian Investors and the circumstances to which it was accumulated.
“The Senate also mandated this Committee by way of the Senate Resolution, to ensure proper verification of the alleged unclaimed dividends, make recommendations which seeks to amend the Twelve (12) year ban on Unclaimed Dividends as provided for by section 383 of the Companies and Allied Matters Act (CAMA) 1990.
“We have also come here to add value and deliberate on a very important Bill which we hope will be of immense benefit to the Capital Market in Nigeria.
“The Chartered Institute of Capital Market Registrars (Establishment, etc.) Bill was one of those Bills which was passed very late by both Chambers of the 7th National Assembly but never received Presidential assent. It is hoped that a quick passage of this Bill by this 8th National Assembly will expedite the process of gaining Presidential assent and becoming an Act of parliament.
“It is to be noted that Capital Market exists to provide long-term capital to both the government and corporate bodies for industrial and socio-economic development and at the same time attract returns for investors by way of dividends. It is expected that a Chartered Institute of Capital Market Registrars will help set ethical standards and standard professional conduct for members including benchmark and best practices in Nigeria.