Unclaimed dividends in the Nigerian capital market rose to N170 billion as at December, 2020, said the Securities and Exchange Commission (SEC).
The Director General (DG) of SEC, Mr Lamido Yuguda, stated this at the second post-Capital Market Committee (CMC) virtual news conference at the weekend.
Mr Yuguda said the figure rose from N158.44bn total unclaimed dividends as of December, 2019, citing issues related to poor identity management.
He said, “We have problems with identity management in the Nigerian capital market, and this is really one of the things the commission is trying to resolve. We have set up a high-powered committee to look at the issue. People bought shares under false names and multiple subscriptions.
“There is a problem with the process, but there is a problem with us too as a people because if you are buying securities using your own wealth; why will you use another person’s name, why will you use a name that will not be traceable to you?”
He explained that the problem became profound after the introduction of the Bank Verification Number (BVN), adding that the BVN was tied to only one name.
Yuguda also said the implementation of the Electronic Dividend Mandate Management System (e-DMMS) portal has seen a total number of mandated and approved accounts from its inception in 2016 to July, 2021 at N1.144bn.
The SEC also said it would clamp down on illegal capital market operators, especially operators of Ponzi schemes, citing their activities as a huge problem for the economy and the country in general.
