New E-Dividend Portal in Nigeria to Be Operational by November 30, 2023, Says SEC
The Securities and Exchange Commission (SEC) in Nigeria has announced that the new e-dividend portal is expected to become operational on November 30, 2023. The portal is aimed at simplifying the process of mandating accounts for e-dividend, with the goal of improving efficiency and reducing unclaimed dividends. The SEC is also supporting the development of an identity management system to ensure proper identification of investors and market participants to prevent the accumulation of unclaimed dividends.
Key Points:
- E-Dividend Portal Launch:
- The new e-dividend portal is set to become operational in Nigeria on November 30, 2023. The portal is part of efforts to address the issue of unclaimed dividends.
- Unclaimed Dividends Solution:
- The SEC believes that the new portal will simplify the process of mandating accounts for e-dividend, leading to increased efficiency and a significant reduction in unclaimed dividends.
- Identity Management System:
- In addition to the e-dividend portal, the SEC is supporting the development of an identity management system to ensure proper identification of investors and market participants. This is aimed at preventing issues that contribute to the accumulation of unclaimed dividends.
- Investor Clinics:
- The SEC continues to conduct investor clinics through its zonal offices. These clinics provide solutions to investor issues related to their investments in the capital market, contribute to investor education, and support financial inclusion efforts.
- Market Expansion and Products:
- Over the past four years, the SEC has worked to expand and deepen the market by introducing new products and expanding existing ones. This includes the registration of central counterparties, approval of derivatives contracts, growth of the ETFs market, and the success of sukuk issuances.
- Technology and Fintech:
- The SEC sees fintech and the technology sector as growth areas for the market and the economy. The Commission is supporting fintechs to be part of the capital market, with the creation of a fintech and innovation office and a regulatory incubation program to guide companies through regulations.
Conclusion:
The upcoming launch of the new e-dividend portal in Nigeria demonstrates the country’s commitment to addressing challenges related to unclaimed dividends. The portal’s introduction, along with efforts in identity management and investor education, reflects the Securities and Exchange Commission’s commitment to improving efficiency and fostering a dynamic and inclusive capital market.
