At a post Capital Market Committee (CMC) press briefing, Dayo Obisan, the executive commissioner in charge of operations at the Securities Exchange Commission (SEC), revealed that the unclaimed dividend in Nigeria has reached a staggering N190 billion. This announcement came after the SEC and the Capital Market community convened the CMC meeting on August 24, followed by the press briefing on August 25.
Lamido Yuguda, the director-general of SEC, also shed light on the ongoing reforms within the commission. He highlighted various areas of focus, including custody, derivatives, trading, commodities exchange, in-house regulatory efficiency, technology integration, crowdfunding, and global advisory services.
Yuguda emphasized the seriousness of the unclaimed dividend issue, citing challenges such as identification problems, multiple subscriptions, and name changes by companies. To address these concerns, the SEC is intensifying its Know Your Customers (KYC) requirements to ensure comprehensive data capture and mitigate the persistence of unclaimed dividends.
Discussing the listing of dollar bonds by companies, the SEC DG expressed confidence, stating that there should be no issue with dollar-denominated bonds. He clarified that any bond is essentially an obligation backed by the issuer’s commitment to repay both principal and interest on the bond, regardless of the currency denomination.
The SEC’s commitment to offering suitable investment products for investors was underscored by the revision of the Capital Market master plan. The ten-year master plan, spanning from 2015 to 2025, underwent a midterm review to enhance its effectiveness. Lamido Yuguda highlighted the achievements resulting from this revised plan and expressed optimism for continued success in 2023.
Opinion:
The escalating amount of unclaimed dividends in Nigeria reflects the complexity of regulatory and operational challenges within the capital market. The SEC’s proactive approach to address these issues through reforms, such as strengthening KYC requirements and facilitating more efficient operations, demonstrates its commitment to enhancing investor confidence and market integrity. Furthermore, the commission’s positive stance on dollar-denominated bonds underscores the potential for diversification and attracting foreign investments. As the SEC continues to prioritize investor interests and market growth, aligning strategies with the revised Capital Market master plan is crucial for sustained progress.
Published by marketnewsng