UNCOVER UNCLAIMED DIVIDEND OWNERS, SENATE TELLS SEC
1. Senate Committee and SEC Collaboration:
- Public Hearing: The Senate Committee on Capital Market, alongside the Security and Exchange Commission (SEC) and other stakeholders, held a public hearing on July 30, 2024.
- Objective: The meeting aimed to develop strategies to tackle the issue of unclaimed dividends in Nigeria.
2. Proposed Measures and Recommendations:
- Amendments: There were suggestions to amend the Finance Act to address the issue more effectively.
- Technology Deployment: The SEC was urged to use modern technology to identify and track owners of unclaimed dividends, and to compile comprehensive data.
- DMO Involvement: Stakeholders criticized the Debt Management Office (DMO) for retaining 10% of unclaimed dividends, suggesting this practice should end.
3. Key Figures' Statements:
- Senate President, Godswill Akpabio: Highlighted the need to address the root causes of unclaimed dividends, aiming to protect investors’ interests and enhance the capital market.
- Senate Panel Chairman, Osita Izunaso: Emphasized the importance of trust in the capital market and the need for legislation to restore confidence. He noted the significant amount of unclaimed dividends and stressed the importance of strengthening Know Your Customer (KYC) requirements.
4. Recommendations from the Hearing:
- Enlightenment Campaigns: There is a call for massive public education on the SEC’s role and the processes for claiming dividends.
- Website Development: Suggestions were made to develop a website where information on unclaimed dividends and other relevant details can be accessed easily.
- Infrastructure Improvement: The need to address gaps in financial institutions’ infrastructure was also highlighted.
5. Legislative and Administrative Actions:
- Finance Act Amendment: The need to amend the Finance Act to separate responsibilities between the SEC and other institutions was discussed.
- SEC's Report: Dr. Emomotimi Agama, SEC’s Director-General, is expected to provide a strategy report to the Senate panel within six months.
1. Senate Committee and SEC Collaboration:
- Public Hearing: The Senate Committee on Capital Market, alongside the Security and Exchange Commission (SEC) and other stakeholders, held a public hearing on July 30, 2024.
- Objective: The meeting aimed to develop strategies to tackle the issue of unclaimed dividends in Nigeria.
2. Proposed Measures and Recommendations:
- Amendments: There were suggestions to amend the Finance Act to address the issue more effectively.
- Technology Deployment: The SEC was urged to use modern technology to identify and track owners of unclaimed dividends, and to compile comprehensive data.
- DMO Involvement: Stakeholders criticized the Debt Management Office (DMO) for retaining 10% of unclaimed dividends, suggesting this practice should end.
3. Key Figures' Statements:
- Senate President, Godswill Akpabio: Highlighted the need to address the root causes of unclaimed dividends, aiming to protect investors’ interests and enhance the capital market.
- Senate Panel Chairman, Osita Izunaso: Emphasized the importance of trust in the capital market and the need for legislation to restore confidence. He noted the significant amount of unclaimed dividends and stressed the importance of strengthening Know Your Customer (KYC) requirements.
4. Recommendations from the Hearing:
- Enlightenment Campaigns: There is a call for massive public education on the SEC’s role and the processes for claiming dividends.
- Website Development: Suggestions were made to develop a website where information on unclaimed dividends and other relevant details can be accessed easily.
- Infrastructure Improvement: The need to address gaps in financial institutions’ infrastructure was also highlighted.
5. Legislative and Administrative Actions:
- Finance Act Amendment: The need to amend the Finance Act to separate responsibilities between the SEC and other institutions was discussed.
- SEC's Report: Dr. Emomotimi Agama, SEC’s Director-General, is expected to provide a strategy report to the Senate panel within six months.