Dayo Obisan, the executive commissioner responsible for operations at the Securities Exchange Commission (SEC), revealed that unclaimed dividends in Nigeria have reached a staggering ₦190 billion. Speaking at the post Capital Market Committee (CMC) press briefing held on Friday, Obisan highlighted the alarming amount of unclaimed dividends within the country’s financial landscape.
The recent CMC meeting, jointly hosted by the SEC and the Capital Market community on August 24, led to discussions about critical reforms underway in the sector. Lamido Yuguda, the director general of SEC, shared insights into the ongoing reforms being undertaken by the commission to enhance various aspects of the Capital Market.
Yuguda addressed the pressing issue of unclaimed dividends, attributing the problem to factors such as identification challenges and multiple subscriptions. He also noted that company name changes have contributed to the complexity of the matter.
To counter these challenges, Yuguda emphasized the commission’s commitment to bolster Know Your Customer (KYC) requirements. By ensuring comprehensive data capture, the SEC aims to eradicate the persistence of unclaimed dividends.
Yuguda also weighed in on the topic of dollar bonds, expressing his confidence in companies listing such bonds. He emphasized the importance of issuers’ ability to meet both principal and interest obligations, regardless of the currency denomination.
Furthermore, Yuguda underscored the SEC’s dedication to offering investment products tailored to investors’ needs. The Capital Market master plan, designed for the years 2015-2025, has been subject to a successful midterm review that has guided the commission’s achievements thus far in 2023.
As Nigeria’s financial sector continues to evolve, the SEC remains committed to addressing key challenges and promoting investor-friendly reforms that facilitate growth and stability.
Photo Source: Google
August 26th , 2023
Delino Gayweh
Serrari Financial Analyst
