Unclaimed Dividends Hit ₦68.7bn in 2024 as SEC Doubles Down on Tech-Driven Solutions
In 2024, thirteen major companies listed on the Nigerian Exchange (NGX) reported a combined ₦68.7 billion in unclaimed dividends—marking a 7.7% rise from ₦63.8 billion in 2023. Despite ongoing efforts in investor education and digital innovations within the capital market, the issue of unclaimed dividends remains persistent. According to the Securities and Exchange Commission (SEC), the overall unclaimed dividend figure across the market has now hit ₦215 billion as of March 2024. Top contributors include Zenith Bank, which leads with ₦30.6 billion, and Nestlé Nigeria with ₦8.97 billion.
A deeper look into company-specific figures shows notable increases across several firms. Stanbic IBTC reported ₦8.41 billion, while Dangote Cement declared ₦5.2 billion—an 11% rise from the previous year. Meanwhile, companies like FCMB Group and Nestlé saw modest declines. Interestingly, Nigerian Breweries, which hasn’t paid a dividend for two years, still posted ₦6.9 billion in unclaimed amounts, suggesting long-standing issues predating recent reforms.
The SEC has acknowledged the limitations of past measures and is now embracing a more tech-forward approach. The Director General, Dr. Emomotimi Agama, announced plans for a mobile app that would allow investors to track and claim dividends in real-time. Building on the e-Dividend Mandate Management System (eDMMS) and recent Senate hearings, the SEC aims to fix core issues—especially poor investor identification and missing account details—which continue to hamper progress.
Agama emphasized that unclaimed dividends represent a failure to deliver value to investors, which undermines trust in the market. By deploying technology, streamlining identification, and intensifying education campaigns, the SEC hopes to eliminate the backlog entirely. The Commission has urged investors to visit its website, mandate their accounts, and engage fully with the digitized claiming process, stressing that any step toward reducing unclaimed dividends is a win for the market.
Source: This day