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.

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.