The Securities and Exchange Commission (SEC) is on the cusp of unveiling a groundbreaking e-dividend portal, poised to streamline the process of mandating accounts in the capital market. The new initiative comes as part of the commission’s relentless drive to foster trust in the Collective Investment Scheme (CIS), with the fund under management catapulting from N1 trillion in 2020 to an impressive N2 trillion in 2023.
Remarkably, the figure has surged to N190 billion in August 2023 from N180 billion in December 2021 and N170 billion in 2020. This exponential growth underscores the burgeoning confidence in the CIS and bodes well for the Nigerian capital market.
In a bid to alleviate the challenges faced by retail investors in claiming their dividends through savings accounts, the apex capital market regulator had previously implemented various measures. Notably, the introduction of the e-Dividend Management Mandate System (e-DMMS) in 2015 marked a pivotal moment in the electronic dividend payment landscape. This innovative platform enables the swift crediting of an investor’s account within 24 hours of dividend payment.
Furthermore, SEC recently inaugurated e-dividend champions for banks and registrars at its Lagos Zonal office. These champions are tasked with expeditiously relaying shareholders’ registration complaints to the Nigerian Interbank Settlement System (NIBSS), ensuring prompt resolutions within three days.
The escalating levels of unclaimed dividends have been attributed to a lack of awareness, forgotten investments, multiple subscriptions, and inadequate identity management. In response, the commission is unwavering in its commitment to deploy effective strategies to curb this trend.
Addressing the press at the SEC Journalists’ training in Lagos, the Director-General of the Commission, Lamido Yuguda, reaffirmed SEC’s determination to tackle the persistent issue of unclaimed dividends. He divulged that the forthcoming portal, scheduled for launch by the end of November, is poised to enhance operational efficiency and foster a substantial decrease in unclaimed dividends.
“In furtherance of its efforts to prevent the accumulation of new unclaimed dividends, the commission is actively involved in developing an identity management system to ensure that investors and market participants are accurately identified,” Yuguda elaborated.
The imminent launch of the e-dividend portal heralds a new era of innovation in the Nigerian capital market, underlining SEC’s unwavering commitment to fostering trust, efficiency, and investor confidence.
By Media Talk Africa
