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Unclaimed dividends worry Nigeria’s Stock Exchange

Abuja, March 8, 2024: Worried by the high rate of idle dividends, Nigeria’s Securities and Exchange Commission (SEC) has intensified efforts to reduce the level of unclaimed dividends in the nation’s capital market.

The commission said in Abuja on Friday that SEC woule organise stakeholders’ interactions aimed at creating awareness and enlightenment on e-dividend, dematerialisation of shares certificates and direct cash settlement payment system, among others.

It also included investors’ interactions in various geo-political zones, would make the market more attractive to new investors.

SEC said the interactions would help proffer solutions to investors with unclaimed dividends and related matters.

”The initiative is one in a series of programmes, and strategies toward reducing the level of unclaimed dividends which stood at N190 billion in August 2023.

”This is by creating awareness, particularly in the regions to make the investing public come forward to take what rightfully belongs to them.

”This is one of the key objectives of the Capital Market Development Master Plan 2015 to 2025.

”The core mandate of the Commission is to regulate and develop the capital market of Nigeria to be at par with its counterparts in other jurisdictions in all ramifications.

”The commission is not resting on its efforts to achieving and sustaining that mission.

”The commission will embark on a series of investor clinics in 2024 in all the regions of the federation to provide the platforms for investors to reap the benefits of investing in the capital market,” it said.

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Unclaimed dividends hits N190bn

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Abuja, Aug. 25, 2023: The Securities and Exchange Commission (SEC) says that the unclaimed dividends figure in the nation’s capital market currently stands at N190 billion.

Mr Lamido Yuguda, the Director-General of SEC, said this at the second post Capital Market Committee (CMC) media briefing in Abuja on Friday.

He said the figure increased due to issues concerning identity management in the country.

Yuguda also attributed the rising figure to multiple subscriptions by investors during banking consolidation and identity management.

According to him, “we have legacy issues that have aggravated unclaimed dividends.”

Yuguda, however, said the commission was working with the Nigeria Inter-Bank Settlement System (NIBSS), on the e-dividend portal.

He added that the SEC was working with NIBSS to make changes to the electronic dividend portal currently going through some form of upgrading and repair.

“We are working very hard to ensure we reduce the number of unclaimed dividends.

“This is why we are upgrading the e-dividend portal with NIBSS to restore investors’ dividend and reduce unclaimed dividends.

“We reiterate that every person, who has come to the capital market and invested money, should be able to get his dividends as and when due,” he said.

On dollar denominated bonds listed on NGX, the director-general said it was not a problem as long as it was a corporate one.

He said that the road ahead of the market was undeniably challenging but that the capital market would step forward in whatever way to lend its helping hand to the current economic reforms.

“We introduced the Know Your Customer (KYC) requirement so that all information needed will be collated.

“The market must make sacrifices to help drive the economic transformation that will change our nation’s fortunes for the better.

“The Chairman informed the meeting that the Investments and Securities Bill (ISB) 2023 was under consideration by the 10th National Assembly.

“The Bill aims to align regulations with the modern dynamics of the market and it is hoped that if passed into law, it will enable optimal contribution of the capital market to national development,” he said.

The director-general said that market players were urged during the meeting to prioritise cyber-security measures to safeguard sensitive financial data and transactions.

He lamented the trend where companies chose to de-list from the capital market.

Also speaking, the Commissioner, Operations at SEC, Mr Dayo Obisan, said one of the major issues bedeviling the commission was for beneficiaries to get access to claim their dividends.

“We keep putting our efforts to ensure that investors update their bank details, information and claim their dividends.

“But we still have some of them who fill in details wrongly.

“We at SEC are working very hard and we want to ensure bonuses get transferred to beneficiaries, capture everyone who is in the market so that our data is more robust.

“We can be able to work effectively on reducing unclaimed dividends,” Obisan said.

CREDITE Capital

CREDITE Capital declares N30m dividend for shareholders

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Lagos, Aug. 23, 2023: CREDITE Capital Finance and Investment Ltd., has declared N30 million dividend to shareholders at 14k per share for the year ended Dec. 31, 2022.

Its Managing Director, Mr Segun Ogunleye, who disclosed this at the company’ 6th Annual General Meeting 2023 (AGM) on Tuesday in Lagos said it also declared a bonus of N25 million to shareholders.

Ogunleye said the dividend was an increase of 27 per cent against N21 million for year ended Dec. 31, 2021 at 11k per share.

He noted that the company, in spite of the harsh operating business environment, forged ahead and declared some profits.

Ogunleye said that the company would continue to deliver excellent result and services to its customers and stakeholders.

“This year, we attribute our development to hard-work, commitment and the very dynamic structure of the firm.

“We understand that there’s inflation and other economic headwinds but we see it as an advantage and opportunity to explore in the face of the challenges of the business world.

“What we have done is to understand our market and explore our target to get our results, particularly as we continue to growing our numbers in lending money to small and medium enterprises and also provide payroll lending to civil servants across the federation,” he said.

Ogunleye reiterated the company’s commitment to sustaining its brand integrity, obligations even as it expands its markets and develop new frontiers to meeting the need of the people.

He urged government to continue to come up with policies that would make live better for business environment.

Chairman, Mr Tokunboh Abudun, CREDITE Capital Finance and Investment Ltd., noted that in spite of the challenges during 2022, the company’s performance reflected its resilience and determination to deliver optimal value to its stakeholders.

Abudun said the company closed the year on a good note, growing Profit Before Tax (PBT) to N86.7 million, representing a 27.1 per cent increase year-on-year from N68.2 million recorded in 2021.

He added that the company recorded a 28.1 per cent growth in Profit After Tax (PAT) to achieve the sum of N70.3 million for the financial year ended December 2022.

“Similarly, our gross earnings grew by 36.2 per cent to N979.5 million compared to N718.9 million reported in FY 2021.

“The growth comprised a 68.9 per cent increase in non-interest income and a 32 per cent growth in interest income and your company grew its balance sheet by 10 per cent to N3.3 billion.

“In 2022, we were consistent with our strategy to deliver innovative solutions that enabled our customers to thrive in a dynamic environment.

“We have successfully diversified into public sector lending which has given the company significant recognition among her peers in the market.

“As a good organisation, our contribution to the operating environment cannot be over-emphasised as the company continues to support educational sectors, especially schools, religious organisations and orphanages,” he said.

The company’s chairman projected a positive outlook for Nigerian banks and Financial Services in 2023.

He, however, stated that taking advantage of the opportunities and overcoming the challenges would require effective risk management, strategic planning and innovation.

“We remain very optimistic about our company’s future and are devoted to effectively transforming our business to deliver optimal performance and significantly superior service to millions of Nigerians.

“We are steadfast in our commitment to lead with best-in-class customer experience, establish a work environment that helps our employees become the best version of themselves.

“They also become even more socially responsible as an institution, and create immense value for our shareholders,” he said.

IMG

IMG declares N208m profit, 40K dividend

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Lagos, July 22, 2023: The Industrial and Medical Gases Nigeria Plc (IMG) has rewarded its shareholders with dividend worth N208.12 million for 2022 financial year.

According to the company, this translates to 40 kobo per ordinary share as against a stock dividend of one for every five shares held in 2021.

IMG Acting Chairman, Mr Aminu Ado, at its 64th Annual General Meeting (AGM) in Lagos, assured the shareholders that the company would continue to embark on revenue generating capital expenditure to boost its earnings in 2023.

Ado revealed that IMG profit before tax grew by 27.56 per cent to N704 million in December 2022, as against N552 million in the corresponding period in 2021.

He said its earnings per share stood at 90 kobo, compared to 89 kobo in the previous year and its net profit shot up by 20.52 per cent to N448 million from N372 million in 2021.

Ado noted that the year 2022 was a challenging but successful year for the company.

He, however, stated that the company’s superior performance was made possible by the collective efforts of all its stakeholders.

“The board would continue to support management’s drive on aggressive marketing of its products, improve service delivery, reduce overheads, develop new markets and introduce new and innovative products.

“These activities, we believe, will back-up management’s drive to sustain and improve shareholder value in 2023,” he said.

IMG Managing Director, Mr Ayodeji Oseni, said key drivers of the company’s impressive performance include strategic implementation and other initiatives.

According to him, the company placed high premium on strategic business development initiatives and was a customer-focused organisation.

“Our operations are based on integrated marketing and selling solutions in the market place.

“The adoption of a deliberate cost reduction policy and focused improvements in our processes is to ensure that plant capacity utilisation play a major role in our performance.

“We value our staff and constantly empower them in addition to ensuring continuous improvement in our internal efficiencies across the business,” he said.

Meanwhile, some elated shareholders of the company extolled its performance and its delivery of brand promise, in spite of the inclement operating environment .

President, Noble Shareholders Association of Nigeria, Mr Mathew Akinlade, said the company performed well in spite of issues of inflation, foreign exchange scarcity, insecurities and other challenges.

“Gross revenue rose by 44 per cent and though the cost of sales increased by 56 per cent, the company is generous to give a very good return of 40 kobo dividend per share.

“It means the board and management care for its shareholders,” he said.

The company, which rebranded from BOC Gases Nigeria Plc, continues to strengthen its global competitiveness on a sustainable basis, irrespective of the nature of the operating environment.

SEC-building

SEC to sanction stakeholders over unclaimed dividends

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The Securities and Exchange Commission (SEC), says it will sanction stakeholders whose actions are frustrating its efforts toward reducing the volume of unclaimed dividends.

Mr Lamido Yuguda, the Director-General of SEC, said this at a post Capital Market Committee (CMC) news conference on Friday in Abuja.

According to Yuguda, in spite of the commission’s efforts in ensuring Electronic Dividend Mandate Management System (e-DMMS), investors have continued to lament the delay in the payment of their e-dividends.

He said that a lot of investors had yet to mandate their account to be able to receive their dividends.

Yuguda said that unclaimed dividends as at 2021 stood at N177 billion, which was higher than the 2020 figure of N168 billion.

“Capital market operators must also do more to demonstrate through their activities, an efficient capital market system that prioritises the interest of investors.

“As part of our efforts to stem the tide of activities of unregistered crowdfunding platforms, the commission warned the operators of these platforms that they stand the chance of being  prosecuted,” he said.

The director-general also said that the commission had obtained donor funding to acquire and deploy securities market surveillance system.

According to him, the surveillance system will improve the commission’s regulatory and supervisory capabilities, over securities trading activities.

He said that the commission would continue to engage the Standards Organisation of Nigeria (SON) to deepen the commodities ecosystem.

Yuguda said the commission had continued to engage with the Ministry of Finance, Budget and National Planning on the request for tax exemption for corporate bonds.

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SEC worry over high level of unclaimed dividends

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The Securities and Exchange Commission (SEC) has expressed worry over the high level of unclaimed dividends in the market.

The Director-General of SEC, Mr Lamido Yuguda, said this at the Post Capital Market Committee (CMC) webinar press briefing on Thursday.

Yuguda said that although dividends were currently distributed electronically, there were so many unclaimed ones.

The DG attributed unclaimed dividends to multiple subscription whereby some investors used various means to subscribe for more than permitted number of shares during public offers.

He said that number of unclaimed dividends would reduce drastically if everyone mandated their accounts.

According to him, SEC has invested a lot of resources, embarked on a number of investor education to ensure that people mandate their account.

”This process is still open, you can do that with the registrar, from commercial banks.

”We also have on our website, a tool which helps you to determine any unclaimed dividend that you may have and I will encourage everyone to take advantage of these tools,” he said.

Yuguda said that dividends that had not been claimed over a certain period were being transferred into the trust fund.

According to him, if anyone comes forward at any given time to claim their unclaimed dividend, this fund will be able to repay those dividends without any problems.

The D-G said that any investment scheme not registered with the Commission was not a bonafide capital market operator.

He urged investors to always check with SEC to know the licensed operators before investing.

”SEC can register a capital market operator and that operator in the cause of his business begins to show signs of distress, the SEC has adequate mechanism to deal with this through our monitoring and enforcement arm,” he said.

The CMC is a platform for interface amongst capital market stakeholders to discuss issues germane to the development and orderly conduct of market activities.

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Unclaimed dividends worry SEC

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The Securities and Exchange Commission (SEC) has lamented the high number of unclaimed dividends in the capital market.

A statement by the Commission in Abuja on Sunday, said Mr Lamido Yuguda, the Director-General of SEC, expressed the regret when Prof. Kabiru Bala, Vice-Chancellor of Ahmadu Bello University (ABU) Zaria, visited him.

Yuguda appealed to investors to mandate their accounts for electronic payment to reduce the number of unclaimed dividends.

He noted that many investors had shares in the market which they had abandoned.

“People have not come forward to claim their dividends and this has led to huge unclaimed dividends.

“The Commission has been educating and enlightening the public on how they can get their dividends. People do not need to wait for the broker to send the dividend warrants through the registrars.

“The dividends can be paid directly into their bank accounts through e-dividend payments,’’ he said.

Yuguda said that SEC was currently carrying out some initiatives that would appeal to younger generations and attract them to the capital market.

Earlier, Bala described the visit as part of efforts by the university to connect with its alumni as done in most global universities.

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SEC warns quoted firms, registrars to stop selective dividend payments

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The Securities and Exchange Commission (SEC) has warned quoted companies and capital market registrars to desist from selective payments and distribution of dividends.

The Director-General of SEC, Mr Lamido Yuguda, said this on Saturday at the

Institute of Capital Market Registrars (ICMR) 10th Annual Conference,

Investiture of fellows, Induction of Associates and Annual General Meeting in Lagos.

Yuguda, in his keynote address, said that the attention of the commission had been drawn to the fact that some companies and registrars carry out selective payments and distribution of dividends.

He also disclosed that some were unwilling to release the unclaimed dividends in their custody and employed several antics to frustrate shareholders from enjoying the benefits of the E-DMMS platform.

Yuguda said that the commission would not hesitate to sanction any erring operators in relation to unclaimed dividend or any other issue.

“We, therefore, urge the ICMR to encourage its members to uphold the Code of Ethics of the profession and as contained in the Rules and regulations of the commission,” he said.

Yuguda also lamented that the number of mandated accounts had been on the decline for some time.

“Regrettably, the number of mandated accounts has been on the decline for some time and the rate at which investors are coming forward to conduct their KYC has not been encouraging.

“I urge the ICMR and its members to do their best to address some of these challenges,” Yuguda added.

According to him, operators have a duty to uphold the integrity of the capital market to foster investor confidence.

He said that investors are the greatest assets in the capital market.

Yuguda emphasised the need for the ICMR and SEC to work together and leverage the opportunities that digital technology provides.

He said that this would help to resolve the lingering issues surrounding unclaimed dividends in the Nigerian capital market.

Speaking on the theme: “Reinventing the Nigerian capital market for growth: The digital technology approach,” he said the commission would continue to engage with all stakeholders on new developments in the digital technology space.

“I believe that we all have a common interest in seeing these opportunities harvested, but also in mitigating the risks so that we all can reap the benefits.

“As you are aware, the SEC has committed resources to put in place several measures to address the issues of unclaimed dividend.

“Despite this commitment of resources, the issues still linger,” Yuguda said.

He noted that the commission had adopted a three-pronged approach to regulating digital innovation —  safety, market deepening and provision of solution to problems.

Yuguda said the SEC would continue to ensure that intermediaries harness digital technology in such a way to better serve the needs of investors in all aspects of the capital market.

He said the commission had recognised that if the application of digital technology to financial market practices was not properly regulated, it could lead to outcomes that would threaten investor confidence.

Yuguda said that the SEC would continue to ensure that intermediaries harness digital technology in such a way to better serve the needs of investors in all aspects of the capital market.

In his welcome address, President & Chairman of Council, ICMR, Mr Seyi Owoturo, said that the COVID-19 crisis brought about digital transformation in the way companies in all sectors and regions do business.

Owoturo said that the objective was to ensure that the new combinations of talent and technology are delivering decisive advances and value in investor experience and operational efficiency.

“We expect digital technology to drive positive outcomes in streamlining processes, harnessing data and shaping entirely new ways of doing business. 

“It is expected that the outcome of this conference will reposition the Nigerian capital market for growth by creating a capital market that is attractive to investors and able to support the long-term investment needs across the private and public sectors of the economy.

“We are confident that by addressing the scourge of unclaimed dividends, the need for shared market infrastructure, and the changing role of regulators, the discourse in the conference will galvanise the drive towards repositioning the Nigerian capital market for sustainable growth,” he said.

Mr John Obaro, Managing Director/Chief Executive Officer of SystemSpecs Ltd., spoke on exploring digital  innovations to solve the issue of unclaimed dividend in the country.

He said technology could be used to open up new ways of operations, drive productivity, increase collaboration and partnership, among others.

Obaro said to bring a lasting solution to the unclaimed dividend conundrum, legislation and guidelines should be looked into, as current laws cannot motivate the industry players to aggressively seek a resolution.

He added that laws should be enacted and guidelines issued that move the customer to the centre of the benefits of investments, while also noting that there should be automation of a properly integrated system.

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Capital market investors generate N732.91bn from dividends

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The Nigerian Exchange (NGX) Ltd has announced that investors of listed companies have raked in more than N732.91 billion from dividend payout Year-To-Date (YTD).
The Chief Executive Officer, NGX, Mr Temi Popoola, disclosed this in a report on Monday in Lagos.
The data showed that so far, 58 companies across 10 sectors of quoted companies on the NGX have paid out N732.91 billion.
It was broken down as follows: financial services (21), consumer goods (seven), industrial goods (six), oil & gas (five), healthcare (four), services (four), ICT (three) and natural resources (two).
Others are construction/real estate (two), agriculture (two) and conglomerates (two).
According to the report, overall, Dangote Cement has made the highest dividend payout, followed by MTN, Guaranty Trust Holding Company (GTCO), BUA Cement and Stanbic IBTC as top five highest dividend payment so far.
Dangote Cement, under industrial goods paid N272.64 billion dividend; MTN Nigeria Communications, under ICT paid N92.61 billion and GTCO, under financial services paid N79.46 billion.
Also BUA Cement, under industrial goods paid N69.99 billion and Stanbic IBTC Holdings, under financial services paid N46.64 billion.
It said that the financial sector has the highest number of companies paying dividend and value of dividend, with GTCO leading the pack at a payout valued at N79.46 billion.
According to the report, in the consumer goods sector, Nestle leads amongst the seven companies with a payout of N28.12 billion while Fidson leads the healthcare sector with payout of N521.59 million.
Total Nigeria takes the lead in oil & gas at N2.06 billion and UACN leads the conglomerates with N3.45 billion.
Caverton takes the lead in services with N335.05 million while Okomu leads in the agriculture sector with N6.67 billion.
Popoola said that as part of efforts to spur activity in the market, the exchange had continued to be innovative and leverage technology to improve investors’ experience and recently, announced the release of its enhanced X-Mobile.
Popoola said: “The delivery of X-Mobile is in line with NGX’s strategic intent to provide an exchange that is easily accessible to stakeholders leveraging digital technology.
“X-Mobile, therefore, provides a platform to engage with existing and potential investors, who now have an increased appetite for data and detailed disclosure information to aid sound investment decisions.
“We are confident that the app will complement the NGX website and other NGX portals currently being used to provide information to market stakeholders,” he said.
The Divisional Head, Trading Business, NGX, Mr Jude Chiemeka, stated: “X-Mobile affirms our commitment to make financial services more inclusive and provide a superior customer experience in the access and use of capital.
“The app has, therefore, been enhanced to ensure that capital market players and potential investors have the requisite resources to make the most out of their engagement with the market.
“We believe that X-Mobile is on course to become the primary interface for local and international investors to stay abreast of market trends and domestic economic performance,” he noted.
As a multi-asset securities exchange offering equities, fixed income and exchange traded funds, NGX continues to make concerted efforts to attract investors to the market through its innovative products and services, engagement sessions, and investment education initiatives.

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SEC accuses operators of frustrating e-dividend registration

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Tanko Mohammed

 The Securities and Exchange Commission (SEC) has blamed some Capital Market Operators (CMOs) for frustrating the e-dividend mandate process, leading to rise in unclaimed dividends in the capital market.

The unclaimed dividends in the capital market were estimated to be in excess of N200 billion.

The Director-General, SEC, Lamido Yuguda, said this at the 2021 first post-Capital Market Committee (CMC) virtual news conference.

Yuguda said that the commission had observed that certain CMOs were frustrating the e-dividend mandate process.

“We implore all stakeholders to comply with all directives of the Commission in this regard, as defaulters would be sanctioned appropriately.

“We have observed that the growth in the number of mandated accounts has been on the decline for some time.

“The capital market community has directed its e-Dividend Committee to engage with the Committee of Heads of Banking Operations to encourage better cooperation from banks as we tackle the challenges of unclaimed dividends,” he said.

The director-general reminded all CMOs that the commission’s directive on update of investors’ Know Your Customer information was still in effect.

He said that the level of compliance had been low in spite of several engagements by the commission.

Yuguda disclosed that there were still 4.01 million accounts with incomplete KYC information as at April 8.

“Despite several engagements, we realised that as at April 8, there were still 4,012,311 accounts with incomplete KYC information.

“This exercise is critical to deepening the participation of retail investors and we direct all CMOs to accord it the highest level of priority,” he said.

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