The Securities and Exchange Commission (SEC) has completed plans to rebuild the e-Dividend Management Mandate System (e-DMMS) platform as part of a sustained effort to reduce unclaimed dividends in the capital market.
According to SEC Director-General Lamido Yuguda, the agency has taken steps to increase the number of mandated investors in the e-DMMS scheme.
Mr Yuguda stated that this includes, among other things, centralized submission of e-dividend mandate forms, an Application Programming Interface (API) for banks and registrars, and a revamped web interface.
He stated that the SEC had invested significant resources and launched several investor education programs to ensure that people mandate their accounts to reap the benefits of their capital market investments.
The reason why the number may not be reducing as expected is that many investors have not mandated their accounts. Dividends are now distributed electronically, so dividends go directly into the investor’s account, and if everybody mandates their accounts, there would be few unclaimed dividends in the system.
This process is still open and can be done with the registrars, forms can be obtained from the banks, too, and it’s a very simple process. We also have on our website a tool that assists investors in determining any unclaimed dividends that they have. And I would encourage everyone to take advantage of these tools or to speak to the complaints section of the SEC directly, and we would guide that person appropriately, he stated.
The SEC DG thanked the House Committee on Capital Markets and Institutions on Unclaimed Dividends for its efforts to investigate the rising value of unclaimed dividends and unremitted dividend withholding tax.
He assured the committee that the commission would provide all necessary assistance to enable it to carry out its mandate.
Mr Yuguda also emphasized the importance of financial sector stakeholders working together to pass the Investments and Securities Bill 2022, which will improve the performance of the Nigerian capital market and align it with global best practices.
