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SEC Decries N170bn Unclaimed Dividends




The Securities and Exchange Commission, SEC, has expressed concern that the value of unclaimed dividends in Nigeria’s capital market has hit N170bn from N158bn which it was in 2018.

According to SEC, the introduction of the Bank Verification Number, BVN, which sought to link actual names to bank accounts was responsible for the rise in unclaimed dividends.

It explained that some investors who bought had in the past bought company shares with false names were now experiencing difficulties in claiming the dividends using their real names.

Director-General of SEC, Mr Lamido Yuguda, at a virtual post-Capital Market Committee, CMC, in Abuja on Friday, stated the Commission had set up a high-powered committee to resolve the issue.

He said, “The truth of the matter is that we have problem of identity management in the Nigerian Capital market and this is one of the things the commission has been trying to resolve. We have set up a high-powered committee to look at this.

“There are people who have bought shares under false names before. That is what we call the multi-subscription problem. The thing is yes there is a problem with the process and also there a problem with us as a people.

“If you are buying securities using your own wealth why would use another person’s name? Why would you use a name that may not be traceable to you? And most of these things really became an issue after the introduction of BVN, because BVN is tied only to one name.

“So should you have any other name than you are using before, those accounts cannot be accepted by your bankers.”

He also the amount of monies Nigerians lose to Ponzi scheme operators.

Consequently, Yuguda warned Nigerians to stay away from any scheme that promises unusual return on investment.

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Many of these Ponzi operators once they give these mouth watering promises they entice so many gullible investors and in the end monies are actually lost and these investors actually flock to our offices to complain but they should actually just check our website, two minutes is enough, to ascertain whether this investment fund is actually registered with the commission,” he added.