N215bn unclaimed dividends: SEC to launch special unit, mobile app

The Securities and Exchange Commission (SEC) of Nigeria is taking significant steps to address the issue of unclaimed dividends, which reached N215 billion as of March 2024. During a recent press briefing, SEC Director General Emomotimi Agama outlined the Commission’s strategy to enhance investor protection and market efficiency.

The SEC will set up a dedicated unit to specifically handle unclaimed dividends. This unit will operate both at the SEC headquarters and branch offices to streamline the process for investors to reclaim their funds.

A mobile app will be launched on the Google Playstore to provide investors with real-time access to their unclaimed dividends and simplify the reclamation process.

The SEC has implemented a Complaints Management Framework and established an Investor Protection Fund to restore investor confidence and handle complaints more efficiently.

Capital Market Operators (CMOs) are required to submit their enterprise risk management frameworks and annual risk profiles. The SEC is also collaborating with other financial sector regulators to address systemic risks and assist Nigeria in exiting the FATF grey list.

The SEC is working to make its rulemaking process more efficient by defragmenting and codifying rules into a comprehensive rule book. Updates are being made to rules on digital assets, banking recapitalization, and Virtual Assets Service Providers.

The SEC is reviewing and updating rules on private bonds to ensure market robustness and investor protection. Feedback from stakeholders is being considered to finalize regulations that support capital formation.

The SEC has approved nine new issuances in the primary market totaling N1.228 trillion, reflecting increased market confidence. The Net Asset Value (NAV) of Registered Mutual Funds has grown by 111.08% to N3.335 trillion, indicating strong growth in the fund management sector.

The SEC aims to encourage companies to list and exchanges to attract new listings, aligning with the government’s $1 trillion economy target.

A new bill has been placed before the National Assembly to strengthen the SEC’s oversight functions. This bill aims to expand the SEC’s powers to address market challenges and ensure a progressive environment for all participants.

Agama reiterated the SEC’s commitment to creating a transparent and efficient market that supports capital formation and prioritizes investor protection.