SEC to set up special units as unclaimed dividends hit N215bn

The Securities Exchange Commission (SEC) says it will set up special units to address issues of unclaimed dividends in the industry.

Emomotimi Agama, SEC’s director-general, spoke at a news conference held after the capital market committee (CMC) meeting on Thursday.

The CMC meeting is the first since the installation of a new management at the commission.

The meeting allowed the SEC leadership to present the new vision for the market, the challenges being faced and to share ideas on how to improve the regulatory framework.

Speaking at the press briefing, Agama said the commission is strongly making efforts to reduce unclaimed dividends.

The director-general said unclaimed dividends have increased to N215 billion as at March this year.

“We’re putting up mechanisms to ensure we bring that figure down,” he said.

Agama said the small offices will be established in the commissions’ headquarters and other offices across the nation.

In August 2023, the SEC had said unclaimed dividends in the capital market increased to an estimated N190 billion — a situation described as “a serious problem”.

Describing the issue as “monster in the capital market” in June, Agama called on stakeholders in the capital market to collaborate with the commission to reduce the quantum of unclaimed dividends.

At a meeting with the senate committee on capital markets on July 30, stakeholders mandated Agama to present strategies to the senate panel within the next six months to facilitate the reclamation of unclaimed dividends from the Debt Management Office (DMO).

They asked the SEC to deploy modern technology to identify owners of unclaimed dividends and compile comprehensive data.

Speaking on the deadline, the director-general noted that the commission is collaborating with stakeholders to tackle the problem, aiming to report progress to the senate committee within the next six months.

He said the SEC has also improved complaints management through the implementation of the complaints management framework and the establishment of an investor protection fund to restore investor confidence.

Agama, who is also CMC chairman, called on capital market operators (CMOs) to ensure compliance with the Nigerian sanctions alert system and to enhance reporting on politically exposed persons (PEPs) and suspicious transaction reports (STRs).