-set to resolve issue

 

By Peter OBIORA investadvocate

July 16, 2010 11:00 GMT

 

The Apex Capital Market Regulatory Institution the Securities and Exchange Commission (SEC) has written Quoted Companies on the Nation’s Stock Market and Registrars to furnish it with a list of unclaimed dividend warrants of investors in their possession to enable the Commission fashion out ways of resolving the issue.

 

Gboyega Babalola, Managing Director (MD) Sterling Registrars Limited on Tuesday July 15 2010 confirmed this to investadvocate in an interview in Lagos Nigeria.

 

He affirmed that the letter emanated from the Department of Research at SEC.  ”This letter emanated from SEC’s Research Department and they would want to find out over the period the total amount of unclaimed dividend and latest by next week, we would respond and furnish same to them. SEC is working hard to solve the issue of unclaimed dividends” he said.

 

Babalola further affirmed that the Commission has informed them that unclaimed dividend list has increased over the years to a higher level and the Apex Capital Market Regulator wants to find out the level of increase. “This letter was sent out last week to all Registrars and quoted companies” he affirmed”

The Sterling Registrars Chief Executive also affirmed to investadvocate that currently the amount of unclaimed dividend is estimated to stands at over N20 billion. “Unclaimed dividend amount is estimated to be currently over N20 billion” Babalola said.

 

In a Journal of Financial Management & amp; Analysis, July 2006 by Ifuero Osad Osamwonyi, Osarobo Churchill Imasuen, It was affirmed that the growth of unclaimed dividends in Nigeria has been phenomenal. As at the end of 1999, the figure had risen to about N2.0 billion.

 

As earlier reported by BusinessDay July 14 2009, the paper affirmed that SEC recorded N17.9bn worth of unclaimed dividend.

 

BusinessDay affirmed that these were disclosed by Bala Usman, Acting Director, Special Assistant who represented Daisy Ekineh, the then Director General (DG) of the Commission, at a Capital Market seminar organised in Lagos Nigeria by PriceWaterHouseCoopers.

From N2.09 billion as at third quarter (Q3) of 1999, the figure for unclaimed dividend has risen significantly over the years to about N17.9 billion as at December 2008, SEC was quoted by the paper as saying and that this figure was obtained from the companies not from their registrars.

This shows an increase of 756.46 percent (756.46%) in the review period of N2.09 billion in 1999 to N17.9 billion in year 2009.

However, as at the time of filling in this Report, investadvocate could not confirm this on phone as all efforts to reach Lanre Oloyi, Head, Media of the Commission failed.