As of December 31, 2023, the unclaimed dividend of shareholders of Dangote Cement Plc has surged to N4.7 billion, as revealed in the company’s 2023 audited annual report obtained by Nairametrics.
A glance at the audited financial statement submitted to the Nigerian Exchange Limited and the investment public indicates a 6.82% growth from the N4.4 billion reported in 2022.
The company emphasized its commitment to collaborating with registrars to promptly ensure shareholders receive their dividends.
In its advice to shareholders, Dangote Cement urged those yet to complete e-dividend registration to download the registrar’s E-Dividend Mandate Activation Form, available on the registrars’ website. Shareholders with unclaimed dividend warrants or share certificates were encouraged to complete e-dividend registration or contact the registrar.
The company emphasized the importance of shareholders notifying registrars of any changes in their details to facilitate seamless communication.
Several factors contribute to the rising wave of unclaimed dividends, including shareholder deaths, multiple applications during investment processes, and deliberate actions by some registrars and companies lacking liquidity to pay.
Mike Eze, Managing Director of Crane Securities Limited, attributed the root of this issue to the indigenization era under General Yakubu Gowon’s administration. During this period, individuals in authority acquired shares in privatized companies under fictitious names, making it challenging to claim dividends.
Similarly, David Adonri, Managing Director of Highcap Securities Limited, highlighted the persistent increase in unclaimed dividends, tracing it back to shareholders making multiple subscriptions in fictitious names during indigenization exercises. This practice resulted in challenges opening bank accounts for e-dividend collection, rendering many dividends statute-barred and forfeited to companies.
Given these complexities, recovery by affected shareholders may prove challenging without proper means of identification.
