2007 unclaimed dividends hit N19bn

Gbola Subair, Abuja - 29.02.2008

The Securities and Exchange Commission (SEC) has disclosed that unclaimed dividends stood at N19 billion in 2007 as a new dividend payment system was on Thursday unfolded in Abuja.

Director General of SEC, Mallam Musa Al-faki, disclosed this while launching the new payment system known as e-Dividend

He said the unclaimed dividends reached a very high number as a result of the inability of shareholders to claim them due to death, loss of dividend warrants, changes of addresses and lack of awareness on the part of investors.

He said it was in line with plan to resolve the problem, among others, that made SEC to spear-head the introduction of the electronic payment system, the e-dividend.

Mallam Al-faki said the e-system, launched on Thursday, would automatically allow dividend to be credited directly to the shareholders’ account within 24 hours of the payment by the company. In this regard, companies are encouraged to meet their obligation of dividend payment promptly.

Launching the new payment mode, the Minister of State for Finance, Mr Remi Babalola, disclosed that the economy was going in the right direction, citing the IMF’s support for the macro-economy stability and micro-economy progress of the country.