The Securities and Exchange Commission (SEC) and registrars have called on shareholders to complete e-dividend mandate forms and update their records. This will enable the direct crediting of dividends to their bank accounts. A dividend is a portion of a company's profit distributed to shareholders. Shareholders receive a payment based on the number of shares they hold.
According to the SEC, around ₦270 billion in unclaimed dividends and other dormant investor funds are yet to be claimed by their rightful owners. An unclaimed dividend occurs when a company declares a dividend for shareholders, but it is never collected. This can happen due to various reasons, including shareholders moving without updating their records, changes in bank account details, or lack of e-dividend registration.
Shareholders can recover their unclaimed dividends by following a few steps. First, they need to check for unclaimed dividends on the SEC Nigeria Search Page or the CSCS Unclaimed Dividend List. They should search using their full name or a family member's name, noting the specific company name and the assigned Registrar. This will help them identify if they have any unclaimed dividends.
The second step involves using the Self-Service Portal, which can be accessed via the NIBSS Self Service Portal. Shareholders need to complete the electronic mandate form (e-DMMS) without visiting a bank. They will be required to provide their Bank Verification Number (BVN) and active bank account details. This portal provides a convenient and efficient way for shareholders to update their records.
To complete the process, shareholders need to provide required verification documents. These include digital copies of a valid ID, such as a National ID, International Passport, or Voter's Card. They should also include their Clearing House Number (CHN) if available. Passport photographs and a scanned signature are also required. In cases where the shareholder has passed away, the death certificate and Letter of Administration are needed to claim on their behalf.
The SEC and registrars are working to unlock domestic savings for a $1 trillion economy. The two-day settlement cycle has enhanced the stock market, and the SEC is calling for structured private funding for Abuja infrastructural development. These efforts aim to promote economic growth and development in Nigeria.
Shareholders who have unclaimed dividends are urged to take action and recover their funds. By following the steps outlined by the SEC and registrars, they can update their records and receive their dividends directly into their bank accounts. This will not only benefit the shareholders but also contribute to the growth of the economy.
Key points
- The SEC is seeking the owners of around ₦270 billion in unclaimed dividends and other dormant investor funds.
- Shareholders can recover their unclaimed dividends by completing e-dividend mandate forms and updating their records.
- The Self-Service Portal provides a convenient way for shareholders to update their records and claim their unclaimed dividends.
