SEC Pushes for Recovery of N242bn in Unclaimed Dividends Amid Rising Backlog
The Securities and Exchange Commission (SEC) of Nigeria has revealed that unclaimed dividends in the nation’s capital market have ballooned to N242 billion as of June 2025. Despite multiple technological and regulatory interventions—such as the e-Dividend Mandate Management System—millions of naira continue to remain inaccessible to investors. In response, the SEC issued a new circular on June 10, mandating companies to transfer dividends unclaimed for over six years to the Unclaimed Funds Trust Fund (UFTF), in accordance with the Finance Act 2020. Until the UFTF becomes operational, companies must honour all valid claims dating before the law’s enactment.
The surge in unclaimed dividends is attributed to outdated shareholder records, lack of awareness, and unresolved inheritance disputes. What began as N2.09 billion in 1999 has climbed steadily, reaching N90 billion by 2015, N158.44 billion in 2019, and now N242 billion in 2025. The Finance Act 2020 replaced the older 12-year statute-barred policy with a new six-year transfer provision to the UFTF, allowing indefinite claims. However, the UFTF is still not functional, though SEC Director-General Emomotimi Agama claims that progress is underway.
In 2024 alone, 14 blue-chip companies declared a staggering N114.6 billion in unclaimed dividends, a 45.8% increase from the previous year. United Bank for Africa (UBA) led with N45.9 billion, followed by Zenith Bank at N30.6 billion. Other major contributors include Nestle Nigeria, Stanbic IBTC, and Dangote Cement. The figures underscore the growing urgency of the situation, especially as these companies have also declared new dividends for 2024, likely inflating 2025’s totals unless systemic bottlenecks are resolved.
To tackle this, the SEC has doubled down on digital and regulatory measures. A revamped e-Dividend Mandate Management System was launched in 2024 in collaboration with the Central Bank of Nigeria and NIBSS, making it easier for shareholders to link their bank accounts electronically using their Bank Verification Numbers (BVN). A mobile app and a legacy-resolution unit were also introduced to aid in tracking and claiming dividends, particularly for deceased investors’ next of kin. Public awareness efforts have also been ramped up.
These reforms are beginning to show progress. Access Holdings Plc, for example, cut its unclaimed dividend portfolio from N21.3 billion in 2023 to N17.73 billion in 2024. Agama emphasized that the SEC remains committed to reducing and ultimately eliminating unclaimed dividends through technology, education, and stakeholder engagement. He encouraged investors to keep their records updated and make full use of available digital tools to recover their entitlements without delay.
Source: The Sun