Shareholders under the Independent Shareholders Association of Nigeria (ISAN) have strongly opposed the new legislation passed by the National Assembly mandating the transfer of unclaimed dividends to the Central Bank of Nigeria (CBN) for management. In a statement signed by ISAN’s National Coordinator, Mr. Moses Igbrude, the group condemned the move, describing it as a violation of investor rights and an infringement on private property.
According to ISAN, the bill requires all unclaimed dividends to be moved from company registrars into accounts managed by the Securities and Exchange Commission (SEC) and opened by the Debt Management Office at the CBN. The group criticized this as a dangerous precedent, warning that it could damage investor confidence and the integrity of Nigeria’s capital market. They argued that rather than confiscating the funds, efforts should be made to reform the dividend claims process through improved technology and better public education.
ISAN called on President Bola Tinubu to withhold assent to the bill or, if already signed, to suspend its implementation pending a judicial review. They emphasized that unclaimed dividends belong to individual shareholders and their heirs, not the government, regardless of how long the dividends have remained unclaimed.
The shareholders also announced plans to challenge the legislation in court, describing it as a form of indirect expropriation. They warned that placing such funds under CBN control could deter both local and foreign investment at a time when the country needs strong investor confidence to revive its capital markets.
Additionally, ISAN criticized the lack of broad stakeholder consultation before the bill was passed, stating that there was no public hearing or inclusive dialogue with registrars, investors, or capital market institutions. They said this approach undermines participatory governance and due process, further weakening public trust in Nigeria’s financial regulation framework.
Source: This day