The total value of unclaimed dividends in Nigeria has risen to N190 billion, marking a 7.35% increase from the N177 billion recorded in 2021, according to the Securities and Exchange Commission (SEC). The SEC’s Executive Commissioner, Operations, Dayo Obisan, highlighted the need to pay attention to the pace of increase in unclaimed dividends. Efforts are being made to reduce the figure by transmitting the dividends to the beneficial owners and encouraging investors to claim their dividends by updating their information and Know Your Customer (KYC) details. The value of unclaimed dividends has been a persistent issue in Nigeria’s capital market.
On a positive note, the Director-General of the SEC, Lamido Yuguda, revealed that registered exchanges in Nigeria outperformed global indices in the first half of the year. Nigeria’s stock market demonstrated gains in the All-Share Index and market capitalization, attributed to factors like appealing dividend yields, corporate earnings recovery, and improved sentiments among domestic retail investors. Indicators reflecting investor involvement, including trading volume, value, and the number of transactions, also showed month-on-month increases throughout the first half of 2023.
Regarding the proposal of the Nigerian Exchange Limited to allow the listing of dollar-denominated bonds followed by equities, Yuguda expressed no concerns, stating that what matters is the obligor’s ability to meet the interest and principal repayment obligations of the bond, regardless of the currency denomination.
