Seplat Petroleum Development Company Plc has said that its Nigerian shareholders will receive their dividend in naira, contrary to reports.

The company, which is listed on the London and Nigerian stock exchanges, clarified its dividend payment policy to Nigerian shareholders following news reports that it was insisting on paying its Nigerian shareholders in dollars.

It made the clarification in a statement by its General Counsel, Dr. Mirian Kachikwu.

According to the statement, the seeming confusion over the company’s dividend policy is as a result of a simple misunderstanding.

The statement read, “We are constrained to publicly clarify our dividend payment policy and set the records straight against the backdrop of recent media reports, obviously on the ground of a simple misunderstanding.

“Seplat has a diverse shareholder base and we pay dividends to our diverse shareholders in compliance with applicable Nigerian laws and regulations.

“For the avoidance of doubt, our final dividend for the full year 2014, following shareholder approval, on June 2, 2015, will be paid in naira, as applicable, to our Nigerian shareholders on June 10, 2015.”

Kachikwu explained that the misunderstanding had arisen from an act of magnanimity on the part of Seplat, which was applauded by shareholders, but which is now being criticised.

She said, “The slight confusion must have arisen when we paid our interim dividend in November 2014. We had given relevant ‘Nigerian’ shareholders who have domiciliary accounts the option of receiving their dividends in United States dollars.

“Obviously, this act of magnanimity, which was applauded by a number of shareholders, also drew sharp criticism from others.”

Explaining further, she said the fact of the company being listed on the two bourses meant that its annual report must be denominated in both naira and dollars.

She added, “As a company listed on two exchanges in Lagos and London, we prepare our annual accounts in two currencies, the Nigerian naira and the US dollar.

“Our Nigerian accounts for the full year 2014, submitted to the Nigerian Stock Exchange and published in some national dailies two weeks ago, was denominated in the Nigerian naira.

“These accounts are exactly the same as the US dollar denominated version, submitted to the London Stock Exchange, having used the ruling exchange rate of the naira/dollar to convert the accounts to naira.”

Punch