Investors Say Frustrating System Fuels Dividend Losses
Shareholders have asked the Securities and Exchange Commission (SEC), stockbrokers, and registrars to make dividend claims easier. They said the current process is slow, difficult, and discouraging.
Some shareholders spoke to journalists in Abuja on Sunday. They said the rising figure of unclaimed dividends showed the need to fix the system.
Mrs Bisi Bakare, the National Coordinator of Pragmatic Shareholders Association, blamed the trend on poor estate planning, outdated records, and administrative bottlenecks.
“Probate costs, delays, and registrar frustration make it hard to claim dividends,” she said.
She noted that many investors bought shares using different or fictitious names during past privatisations. Some of them have died, while others moved before the introduction of electronic dividend payments.
“Many can’t remember the names they used. Some have died, and their families don’t even know about the shares,” she added.
“There’s no will, no record update, and no information passed on. How will their families claim what they don’t know exists?”
She said the association encourages members to register for e-dividends and regularly update their bank and shareholding details.
Bakare also noted that the group uses a platform to inform members about companies declaring dividends.
Registrars and Banks Must Take More Responsibility
Mr Moses Igbrude, National Coordinator of the Independent Shareholders Association of Nigeria, also expressed concern. He said unclaimed dividends remain a problem even among recently listed companies.
He advised registrars to contact shareholders using their provided information.
“If shareholders in Lagos can’t claim dividends, imagine the people in remote villages,” he said.
Igbrude urged companies and banks to reach out to shareholders directly. He said banks can use their systems to notify people about unclaimed dividends.
“If we are serious about solving this, we need all parties involved,” he said.
“Companies, brokers, registrars, and shareholders’ groups must all work together to educate people.”
He also opposed the dividend trust fund created by SEC. He said the process for transferring shares from deceased persons should be made easier and more transparent.
Nigerian Banks Report Soaring Unclaimed Dividends in 2024
Some top banks in Nigeria recorded a rise in unclaimed dividends despite efforts by the SEC and the Nigeria Inter-Bank Settlement System (NIBSS).
UBA reported ₦45.99 billion in unclaimed dividends for 2024. That figure was ₦14.89 billion in 2023.
Zenith Bank posted ₦30.6 billion in unclaimed dividends for 2024, slightly higher than ₦30.1 billion in 2023.
However, Access Holdings Plc saw a decline. The group recorded ₦17.73 billion in 2024, compared to ₦21.3 billion in 2023.
Many shareholders say unless the claiming process becomes easier, these figures may continue to rise.
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