Despite numerous reforms aimed at modernizing Nigeria’s capital market, unclaimed dividends continue to be a major financial stumbling block for Nigerian investors. In 2024 alone, over 13 listed companies on Nigeria’s primary stock exchange reported a staggering N69 billion in unclaimed dividends, even as regulatory authorities intensified efforts to resolve the issue through automation, investor education, and digital infrastructure upgrades.

Worse still, the total volume of unclaimed dividends in the Nigerian capital market has ballooned to N215 billion as of March 2024, according to a disclosure made by the Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama. This revelation underscores the systemic persistence of the problem, and the billions of naira in profits that remain locked away, unused, and inaccessible to rightful owners.

Unclaimed Dividends: A Lingering Investor Crisis

Unclaimed dividends refer to profit distributions declared by public companies but never received by shareholders, either due to outdated contact information, lack of awareness, or death of the investor. These funds could have been reinvested or used by shareholders to meet other financial goals. Instead, they sit idle in registrars’ records and bank databases, unable to contribute meaningfully to the economy or individual financial well-being.

For retail investors, especially those holding modest quantities of shares, the problem is even more pronounced. Many remain unaware that they have funds accumulating in their names. Additionally, heirs of deceased shareholders often face significant bureaucratic and legal barriers when trying to access dividends left behind by relatives, further complicating an already fragile system.

Breakdown of 2024 Unclaimed Dividend Figures

Several blue-chip companies continue to lead the pack in unclaimed dividend amounts, based on their 2024 financial reports. These figures further emphasize how widespread the issue has become across the capital market:

• United Bank for Africa (UBA) Plc: N46 billion

• Zenith Bank Plc: N30.6 billion, slightly up from N30.1 billion in 2023

• Access Holdings Plc: N17.73 billion, down from N21.3 billion in 2023

The collective shortfall reported by these institutions alone accounts for over N94 billion of the total unclaimed amount. With other listed firms yet to release full disclosures, experts warn that the figure could surge even higher by the end of 2025.

Technology and Reforms: Still Not Enough

To address the issue, the SEC in partnership with the Nigerian Inter-Bank Settlement System (NIBSS) introduced the Electronic Dividend (E-Dividend) Mandate platform. This innovation was designed to enable seamless dividend payments directly into investors’ bank accounts. Despite this technological advancement, many investors have not taken the necessary steps to register on the platform.

According to capital market analysts, the bulk of unclaimed dividends currently represent legacy funds—dividends declared before the E-Dividend system was fully operational or widely adopted. Others result from banks and registrars failing to update records, or discrepancies in personal information such as mismatched names or incorrect bank details.

Dr. Agama noted, “The SEC is at the forefront of reducing unclaimed dividends. We are investing in technology, investor education, and partnerships to ensure people understand the simple steps to access their funds. Accurate identification and proper documentation remain vital.”

Identity Verification and Documentation: The Crux of the Problem

Although the tools for recovering dividends are available, the main challenge lies in shareholder verification. Without consistent and reliable data, financial institutions cannot authenticate investors’ identities, especially when heirs or third parties seek to claim the funds. Name mismatches, missing BVNs, and other inconsistencies continue to hamper access, despite the simplicity of the recovery process itself.

The NIBSS Self-Service Portal has been promoted as a solution, enabling investors to:

• Check for unclaimed dividends

• Register for E-Dividend

• Update personal and banking details

To use the platform, investors must provide key personal information, including:

• Bank Verification Number (BVN)

• Bank name and account number

• Surname (as registered with the stockbroker or registrar)

Additionally, users must upload:

• A valid government-issued ID

• Passport photograph

• Signature sample

Once completed, the system processes the application and links future dividend payments to the correct bank account.

Legal Heirs and Deceased Investors: A Separate Battle

For heirs attempting to retrieve dividends from deceased shareholders, the challenges can be even more complex. Many face long court processes, costly affidavits, and a lack of digital documentation. In some cases, families are entirely unaware that their late relatives held shares in publicly listed companies. Without prompt notification from registrars or estate administrators, these dividends continue to remain unclaimed indefinitely.

Stakeholders have called for a centralized and digitized registry that not only tracks ownership but also allows for secure succession planning and real-time alerts to next of kin.

Looking Forward: What Can Be Done?

The road to resolving Nigeria’s unclaimed dividends crisis is long, but not without hope. Here are some key suggestions from financial analysts and market observers:

1. Increased Awareness Campaigns
   The SEC and stockbrokers must aggressively promote dividend awareness across radio, television, online platforms, and community forums.

2. Mandatory Shareholder Updates
   Regulators could require all shareholders to update their records annually, especially those not yet enrolled in the E-Dividend system.

3. Streamlined Inheritance Procedures
   The probate and inheritance claim processes need urgent reform. Stakeholders propose introducing a digital inheritance tracking system linked to shareholders’ BVNs and National Identification Numbers (NINs).

4. Enhanced Registrar Accountability
   Registrars and banks should be mandated to publish a list of unclaimed dividends annually and assist in resolving pending claims efficiently.

5. Legislative Backing
   The National Assembly could pass a law mandating banks and companies to remit unclaimed dividends older than a certain number of years into a dormant fund, from which claimants can later retrieve their money.

SEC’s Commitment Remains Strong

Dr. Agama concluded that the SEC remains committed to reforming Nigeria’s capital markets and ensuring every investor has access to their entitlements. “We are leveraging all available tools—digital, legal, and administrative—to address the root causes of unclaimed dividends. Once proper identity records are in place, there will be no excuse for investors not to receive what is rightfully theirs,” he said.

Final Note

Nigeria’s capital market continues to evolve, and with it, the need for stronger investor protection mechanisms. By bridging gaps in communication, strengthening technological frameworks, and simplifying legal processes, the country can effectively reduce the N215 billion locked in limbo—and build a more inclusive, investor-friendly economy.