The Securities and Exchange Commission (SEC) has described investor identification as the root cause of the problem militating against the eradication of unclaimed dividends.

Dr. Emomotimi Agama, Director-General of the SEC, made the declaration in a statement released on Sunday, August 25.

Agama stated: “The major issue is lack of identification of investors. This highlights the need for technological solutions. The Commission is reviewing the entire process to ensure proper identification. Missing account numbers and other details prevent companies from paying dividends to rightful owners.”

Dr. Agama emphasized the SEC’s commitment to eliminating unclaimed dividends entirely.

He added: “We will employ every means possible. This includes technology, education, and persuasion. We want investors to understand the claiming process, identification requirements, and how to retrieve their rightful dividends. Any effort to reduce unclaimed dividends is a win for us.”

The SEC urged Investors to utilize the e-dividend portal accessible through their website. Dr. Agama stressed the portal’s security and urged investors to take advantage of it for account mandates.

“The portal on the SEC website (www.sec.gov.ng) is the only genuine one,” he explained. “The Nigerian Interbank Settlement System (NIBSS) website is the only other authorized platform. We understand the prevalence of cyber threats, and investors should be cautious. Don’t be fooled by cloned websites targeting other institutions.”

“BVNs are currently the most reliable method for information retrieval in the financial sector. We need to verify your identity. A mismatch between the provided BVN and your identity indicates unauthorized access. As an institution, we prioritize investor protection alongside regulatory oversight. We strive to make the process user-friendly while maintaining the highest security standards,” he said.

The SEC boss acknowledged the importance of unclaimed dividends to the SEC.

“Investors come to the market for returns,” he stated. “Unclaimed dividends create a challenge, and the SEC takes this very seriously. The recent Senate Committee on Capital Market hearing on the issue demonstrates our commitment to addressing it. We are revamping the entire process to achieve this goal.”

The SEC previously announced the launch of a revamped e-DMMS portal as a key strategy to tackle unclaimed dividends and enhance investor experience. The new portal provides a “self-service interface” allowing investors to virtually mandate their accounts for e-dividends without visiting a registrar or bank.

Investors with non-mandated accounts listed on the Commission’s website can access the new portal through the “NIBSS Self Service” link.

The SEC’s renewed focus on technology and investor education signals a significant step towards eradicating unclaimed dividends and fostering a more efficient and transparent capital market in Nigeria. (The Nation)

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