The Chief Executive of Institute of Capital Market Registrars, Dr. David Ogogo, on Tuesday said that the Nigerian Uniform Bank Account Number would worsen the problem of unclaimed dividend.

Ogogo told the News Agency of Nigeria in Lagos that the pronouncement of Central Bank of Nigeria on NUBAN would affect their operations and efforts in checking the growth of unclaimed dividend.

He said that the new 10-digit numbers were affecting activities of registrars as most account details in their possession were old account numbers.

NAN recalls that CBN, had in a circular on July 14, 2011, gave June 1, 2012 as the deadline for all account holders to change to the 10-digit number which replaced the old 13-digit.

CBN directed banks to create a NUBAN code for every customer account in their customer database and this NUBAN code should be the only account number to be used at all interfaces with customers.

Ogogo said CBN should not be strict on its June 1 deadline, stressing that the measure would create problems for the registrars as most shareholders had not updated their records.

He said that the institute had committed time, resources and energy to enlightening investors to cue into the e-dividend payment system aimed at reducing unclaimed dividend.

According to him, CBN should have a second look at the policy, while commercial banks should create a soft landing to minimise problem of customers.

The ICMR Chief Executive, had earlier, said that the unclaimed dividend stood at N45.7bn as at December 31, 2011.

Source: Punch