The Securities and Exchange Commission (SEC) is set to introduce a mobile application to streamline the process of reclaiming unclaimed dividends for investors. The announcement was made by the Director-General of the SEC, Emomotimi Agama, during a briefing on the outcome of the Capital Market Committee (CMC) meeting.
As of the first quarter of 2024, the total value of unclaimed dividends in the Nigerian capital market stood at a substantial ₦215 billion. Recognizing the challenges faced by investors in accessing these funds, the SEC has taken decisive steps to address the issue.
Dedicated Unit to Tackle Unclaimed Dividends
To effectively manage and reduce the amount of unclaimed dividends, the SEC will establish a specialized unit within its structure. This unit will operate both at the SEC headquarters and its regional offices, focusing solely on developing strategies to facilitate dividend retrieval.
“We are going to set up a special unit at the SEC that speaks directly to the issues of unclaimed dividends,” Agama stated. “We discovered that a lot of investors are having some minor challenges in trying to get access to those unclaimed dividends.”
Read Also: Naira for Crude: A Potential Game-Changer for Nigeria’s Economy
Mobile App to Simplify Dividend Retrieval
The SEC’s mobile application, accessible on the Google Play Store, will provide investors with real-time information about their unclaimed dividends. The app is designed to simplify the process of reclaiming these funds, offering a convenient and efficient solution for investors.
“The unclaimed dividends mobile app will grant investors real-time access to the number of unclaimed dividends accrued to them and further simplify the process of reclaiming those funds,” Agama explained. The SEC is committed to providing regular updates on the app’s progress to the Senate Committee on Capital Market within the next six months.
Strengthening Investor Protection and Market Integrity
Beyond addressing the unclaimed dividends issue, the SEC is also focused on enhancing investor protection and maintaining market integrity. The commission has implemented a Complaints Management Framework and established an Investor Protection Fund to restore investor confidence.
To mitigate systemic risks, the SEC has mandated Capital Market Operators (CMOs) to develop and submit comprehensive enterprise risk management frameworks and annual risk profiles. Furthermore, the commission is collaborating with other financial sector regulators to support Nigeria’s efforts to exit the Financial Action Task Force (FATF) grey list.
The SEC is actively working to promote the private bond market and safeguard investor interests. The commission is currently reviewing its rules on private bonds to ensure the market’s robustness and investor protection.
Read Also: Nigeria’s Foreign Reserves Surge by $4 Billion Amidst Economic Reforms
If You Ask Me
The SEC’s initiatives to address unclaimed dividends, strengthen investor protection, and promote market integrity underscore its commitment to creating a conducive environment for investors. The introduction of the mobile app for unclaimed dividends is a significant step towards improving investor experience and facilitating access to funds. As the commission continues to implement these measures, it is expected to enhance the overall efficiency and transparency of the Nigerian capital market.
