Shareholders demand SEC action to streamline unclaimed dividend process in Nigerian banks 

Concerns over the continuous rise in unclaimed dividends from banks and corporations have intensified calls for a more seamless, transparent, and accessible system.

Many investors argue that the current process is cumbersome, discouraging rightful claimants from accessing their funds.

According to Mrs. Bisi Bakare, National Coordinator of the Pragmatic Shareholders Association, several factors contribute to the surge in unclaimed dividends, including:

Bakare noted that many shareholders purchased multiple shares under different names, making reconciliation nearly impossible without proper documentation.

She stressed that electronic dividend registration and frequent updates with registrars are critical in reducing the backlog of unclaimed dividends.

Mr. Moses Igbrude, National Coordinator of the Independent Shareholders Association of Nigeria, expressed concern that even newly listed companies on the Nigerian Exchange Group (NGX) continue to experience unclaimed dividend issues.

He proposed that registrars actively reach out to investors through direct communication, ensuring shareholders are aware of their dividend entitlements.

Igbrude criticized the SEC’s dividend trust fund initiative, stating that a multi-dimensional approach involving registrars, stockbrokers, corporate executives, and shareholder associations would be more effective in addressing the issue.

“If the stakeholders are truly sincere, we need a multi-pronged approach that ensures transparency, investor education, and active engagement across all sectors,” he said. 

Additionally, he urged all relevant authorities to simplify the process of transferring shares from deceased individuals to their rightful heirs, eliminating unnecessary delays and bureaucratic hurdles.

With calls for greater transparency, enhanced shareholder communication, and digital integration, the Nigerian financial ecosystem is at a pivotal moment.

Stakeholders remain optimistic that ongoing reforms will create a smoother, more efficient dividend retrieval process, ensuring investors gain rightful access to their earnings without unnecessary delays.