Senate Initiates Reform to Resolve Unclaimed Dividend Crisis in Nigeria
Mercy Adi
The Nigerian Senate In a bid to revamp Nigeria’s capital market, on Monday addressed longstanding issues of unclaimed dividend funds.the Senate Committee on Capital Market convened a public hearing that focused on the pressing issues that has led to accrued unclaimed dividend funds, drawing key stakeholders from the stock exchange sector.
Senate President Dr. Godswill Akpabio, represented by Senator Binos Yaroe, emphasized that unclaimed dividends undermine trust in the market and could hinder economic progress. He said “We must confront these challenges head-on and develop bold solutions to restore confidence in our financial systems,”
The Senate President highlighted the critical juncture the nation faces, stressing that effective reforms could transform Nigeria’s capital market into a dynamic center for investment and growth. “Our nation, rich in resources and resilient in spirit, is poised to lead in economic prosperity and opportunity”.
Senator Osita Izunaso, Chairman of the Committee, highlighted the historical challenges contributing to the problem, including outdated methods of tracking shareholder information. He expressed optimism about ongoing reforms, particularly the electronic dividend portal managed by the electronic dividend mandate committee and NIBSS, which aim to resolve these issues.
Despite advancements in digitization, Izunaso noted the persistence of significant volumes of unclaimed dividends, even in modern, digitally documented offerings like those of MTN Nigeria. The Senate’s renewed focus on this issue underscores a commitment to enhancing transparency and efficiency in Nigeria’s financial sector.
