Shareholders have appealed to the Securities and Exchange Commission (SEC) to address the persistent issue of unclaimed dividends by making the process easy and seamless.
Shareholders expressed their views in Abuja on Sunday while reacting to the continuous rise in unclaimed dividend figures of banks and other companies, highlighting the tedious and frustrating process of claiming dividends.
Speaking on the issue, Bisi Bakare, the National Coordinator of Pragmatic Shareholders Association, stated that administrative costs and delays are some factors discouraging shareholders from claiming dividends.
She added that relocation, fictitious names used in buying shares during privatisation, death, and the neglect of minority shareholders have contributed to the increase in unclaimed dividends. She said:
“Many shareholders purchase multiple shares that they cannot remember the names used, and many of them also relocated before the introduction of e-dividend, hence, no update on the account to pay their dividend into.
“Also, the issue of probate—its administrative cost, delays, and bottleneck—the role of the registrar, and sometimes intentional frustration encountered by shareholders in claiming their money contribute to reasons why unclaimed dividends are growing.”
Highlighting the contribution of the organisation to reducing unclaimed dividends, Bakare stated that the association encouraged its members on the importance of keying into the electronic dividend registration and informed members when companies declare dividends.
Moses Igbrude, the National Coordinator of the Independent Shareholders Association of Nigeria, expressed concern that unclaimed dividends persist even among recently listed companies on the Nigerian Exchange Group (NGX).
He proposed that registrars utilise available contact details to reach out to shareholders, highlighting that addressing the issue of unclaimed dividends requires a multi-dimensional approach.
He called for continuous education, emphasising the need for collaborative efforts from companies, stockbrokers, registrars, and associations.
This appeal to the SEC followed a rise in the unclaimed dividends of some banks for the 2024 financial year. United Bank for Africa (UBA) recorded an unclaimed dividend of N45.99 billion for 2024, up from N14.895 billion in 2023.
Zenith Bank’s unclaimed dividend rose to N30.6 billion for the 2024 financial year, from N30.1 billion in 2023.
