The Independent Shareholders Association of Nigeria (ISAN) has rejected the recent decision by the National Assembly to transfer unclaimed dividends to the Central Bank of Nigeria (CBN).
In a statement signed by Moses Igbrude, ISAN national coordinator, the group strongly condemned the National Assembly’s decision to pass legislation requiring the transfer of all unclaimed dividends from the company registrar to accounts managed by the Securities and Exchange Commission (SEC), opened by the Debt Management Office in the Central Bank of Nigeria (CBN).
ISAN noted that this move is a violation of ownership rights and a betrayal of investor trust.
It stated:
“Unclaimed dividends are not government revenue. They remain the legal property of individual investors and their heirs, regardless of the time elapsed. The attempt to centralise and manage these funds under SEC control is a form of indirect expropriation.”
It noted that the Nigerian investment landscape must be built on fairness and protection of properties to ensure inclusive growth, rather than impulsive dominance. As it called for reform of the progress of claiming dividends, utilising technology and public education rather than confiscation.
ISAN also highlighted that there was a lack of consultation from relevant stakeholders such as shareholders, registrars, and major players in the capital market before the bill was passed, citing it as a disregard for public governance and due process.
Adding that there is no clear-cut communication on how the SEC intends to manage the funds, what returns will be offered to rightful owners, and how and when claims will be honoured.
