Tag: Dividends

  • SEC orders firms to release old dividends

    SEC orders firms to release old dividends

    The Securities and Exchange Commission (SEC) has ordered all public companies and Registrars to stop treating dividends older than 12 years as “statute-barred”.

    The Commission issued this directive in a statement on Tuesday, particularly referring to dividends declared before the enactment of the Finance Act 2020.

    This move reaffirms the provisions outlined in Section 60 of the Finance Act, which governs unclaimed dividends and their proper treatment.

    According to the Act, dividends unclaimed for over six years must be transferred to the Unclaimed Funds Trust Fund (UFTF), pending shareholder claims.

    SEC Director-General Mr Emomotimi Agama stated that shareholders may still claim dividends not older than 12 years as of 31 December 2020.

    Agama noted some companies and Registrars wrongly treat such dividends as “statute-barred”, ignoring the Finance Act 2020’s provisions.

    “In response to ongoing inquiries, the Commission wishes to clarify the proper interpretation and handling of such unclaimed dividends,” he said.

    He explained that under Section 60 of the Finance Act 2020, dividends unclaimed for six years must be moved to the UFTF.

    These funds are to be held in trust, awaiting legitimate claims by shareholders at any point in the future.

    Until the UFTF is fully operational, the SEC directs companies and Registrars to honour all valid dividend claims from 31 December 2020 onwards.

    Agama added that companies and Registrars must comply immediately and submit regular reports as required under the Commission’s rules and regulations.

  • Democracy and Dividends of Diversity – By Dakuku Peterside

    Democracy and Dividends of Diversity – By Dakuku Peterside

    Multiculturalism in England, Ireland and Scotland has produced new leaders of Asian origins. This ideal is celebrated worldwide as progress and a symbol of a more fantastic future where the emphasis will be placed more on unity in diversity than discrimination of the old era. The power of this new development is not lost on people. Rishi Sunak, a Hindu whose parents are of South Asian background but migrated to the UK from Africa, became the first British Prime Minister of a minority ethnic background; Sadiq Khan, a Muslim and son of a Pakistani immigrant, is the Mayor of London; Humza Yousaf, also of South Asian heritage is the First Minister of Scotland. These three are the most powerful and influential leaders in Britain. In Ireland, Leo Varadkar, the current Taoiseach and leader of the Irish government in Dublin, has Indian heritage. The dominance of Asians in the British and Irish political establishment is very evident and a signpost of the importance of an ethnic-blind approach to politics that recognises and rewards capacity, character, and competence over racial identity.

    It is a significant advancement that they elected these leaders in a way that suggests racial and ethnic impediments were insignificant.

    This new political ideal has seen the rise of South Asia as the world’s leading incubator of human capital, especially in great western power blocs in Europe and the USA (Vice President Kamala Harrisis of South Asian heritage). What does this new wave of rise in the presence of people of Asia background in the highest corridors of power in Britain and the USA mean for Nigeria? Apart from just celebrating these successes, what lessons can Nigeria draw from these events?

    These events underscore the importance of human capital development in the struggle for power in a modern democracy that is defined by not just numbers alone  but merit.All these leaders are products of excellent education. Current leaders are like CEOs of great companies, and increasingly, the electorate  demand that their leaders have the requisite skills, abilities, and competence to lead them. A significant prerequisite is excellent education and professional experience. These leaders are highly educated and have proven competence.

    Many Nigerians are relocating abroad in search of greener pastures. Nigerians quickly gain a strong reputation in their quest for knowledge and doggedness in working to achieve their dreams in the various countries they travel to. Universities and colleges in western countries have many Nigerians open to pursuing higher education to better their lots in their host communities. Today millions of Nigerians live abroad; the most prominent communities are the United Kingdom (500,000–3,000,000) and the United States (600,000–1,000,000). Other countries that followed closely were South Africa, Gambia, and Canada.

    Nigerians in the diaspora must put great emphasis on the education of their children. Education is still the most excellent tool for social and political upliftment. We are seeing great rewards abroad, where most Nigerian diasporans dominate the medical and financial management sectors. These gains will soon translate to political advantage, especially in countries where children of these first-generation migrants, born citizens of these countries, may go into politics and compete favourably with locals. One day, we may get a leader of a western democracy with a Nigerian heritage.

    It is a new world. Societies are becoming more diverse, and developed countries are consciously courting diversity through immigration liberalisation.  Canada, for example, is working to welcome 1.5m immigrants by 2025 to strengthen its economy.  The USA has a long history of welcoming immigrants from all parts of the world . Germany will  have received  13 million immigrants by 2023. Australia and Switzerland  have very liberal immigration policies to attract the best talents from all over the world.

    Diversity and plurality have their advantages in a democracy and development . Nigeria is one of the most internally  diverse and plural states in Africa. With over 200 million people from over 300 ethnic groups and languages, Nigeria has a rich socio-cultural heritage to benefit from. This is an advantage, although we focus on the negatives. A diverse democracy explores the benefits of all groups and taps into the best. It is a game of numbers but centres on a merit-based system that rewards hard work and productivity above other considerations. Our plurality allows us to search for and get the best among us to lead our society . This creates an egalitarian society with equality in diversity, where we deploy all talents and skills for the good of all.

    A diverse democracy like ours explores the benefits of all groups and taps into the best. The dividends of democracy are evident when we harvest the best from our diversity, and the benefits accrue to everybody. At least, this is the hope of our founding fathers, who accepted democracy as the best form of government for a diverse Nigerian state. This hope is still flickering, and often we see its light shine brighter when Nigerians come together as one in international sports and other engagements, irrespective of the various ethnic nationalities that make it up.

    However, recently, some of the progress we have made as a nation regarding ethnic harmony has eroded. Ironically, we now negate our natural internal diversity by resurrecting ethnic divisions. We are all willing to celebrate Scotland,  Ireland and England’s  successes, but we are going the opposite path in our country and expect an egalitarian society. The last election unnecessarily  brought untold division, crass nepotism and ethnicity to the fore. Instead of focusing on the merits of voting competent, knowledgeable, and skilful leaders, ethnic bigotry became commonplace.

    Fortunately, in white-dominated western democracies, people of minority ethnic origins are becoming leaders based on their competence and leadership abilities, but in Nigeria, we are still hung up on the issue of the ethnicity of the leaders. We are allowing primordial ethnic sentiments and rivalries to becloud our judgement. It does not matter the ethnicity of a leader as much as that leader has what it takes to bring positive societal development. Even if a leader comes from an ethnic group with a minor population in the country, it does not matter, especially if the leader is visionary and transformational. That is what Nigeria needs. When will we get to a merit-based society where anyone can succeed in Nigeria through hard work, determination, and the power of ideas?

    The ethnic tensions as a fallout of the last election are not necessary, and it beggars belief that at this point in the Nigerian experiment, we are still bugged down with crass nepotism when the world, as seen in the western democracies, has moved on, and are actively encouraging and celebrating diversity and the gains it brings. Instead of focusing on utilising our diversity to our more significant advantage, we are busy preaching the gospel of ethnic superiority . This is a recipe for disaster. Nigeria will never achieve its potential if we continue this way.

    We must learn from Britain, Ireland, the USA, and other western democracies that have found ways of gaining from their diversity. These countries court the best, attract them, and harness their incredible talents for development. We must create an enabling environment that rewards meritocracy, not mediocrity  – mainly based on ethnicism. We must eschew all forms of divisions and celebrate everything that brings us together as one big Nigerian family. The marginalisation of any group based on ethnic  or religious sentiments is a cankerworm that will destroy the fabric of our society.

    Diversity management for optimum national benefit has emerged as a critical urgent task for the new government. President- elect  Bola Ahmed Tinubu and   VP-elect Kashim Shettima have shown that they understand diversity management at different times. In their previous roles as governors, they led inclusive governments that harnessed the potential of all within their states to develop them. They have enviable records of identifying talents and people with capacity, irrespective of which part of the country they come from, which ethnicity they are or their religious sentiments, to work with them to improve the lives of Nigerians living in their states. In their personal lives, they have shown that they are not ethnic bigots but champions of egalitarianism in Nigeria.

    Their winning sent a clear message that your ethnicity, religion, and faith are not barriers to leading the country we call home. I implore the incoming new administration to pay attention to reinforcing our multiculturalism and pluralism. Although enshrined in our constitution, our diversity is under constant threat, and various non-state actors ply multiple strategies and tactics to divide us. The new government must tackle this anomaly and restore hope in our society. Nigerians must be free to live, work, vote and be voted for in any part of Nigeria. Every Nigerian who is qualified to vote must be entitled to his/ her choice.  This administration must enthrone merit, high-quality standards, and good leadership to kick-start our growth as a nation. It must invest heavily in human capital development as the bedrock and foundation on which we anchor the development of Nigeria.

  • Failed banks: NDIC publishes final dividend declaration call to depositors, creditors

    Failed banks: NDIC publishes final dividend declaration call to depositors, creditors

    The Nigeria Deposit Insurance Corporation (NDIC), has published a final dividend declaration notice to depositors of 20 failed banks.

    The NDIC also published a final dividend declaration notice to creditors of five banks in-liquidation.

    The notice published on the Corporation’s website on Friday, listed the banks to include ABC Merchant Bank Ltd., Commercial Trust Bank Ltd. and Continental Merchant Bank Plc.

    Others are Merchant Bank of Africa Ltd., Pan African Bank Ltd., Kapital Merchant Bank Ltd., Eagle Bank and Allied Bank of Nigeria, among others.

    The Corporation also listed creditors’ banks to include Cooperative & Commerce Bank, Nigerian Merchant Bank, Rims Merchant Bank, Alpha Merchant Bank and Continental Merchant Bank.

    NDIC said depositors and creditors who did not establish their claims to the satisfaction of the Director, Claims Resolution Department within 21 days from the date of the publication, would be expunged.

    The Corporation said that the director would after the expiration of the date proceed to make a final dividend payment without regard to such claims.

    “NDIC, the official liquidator of the under-listed defunct banks (in-liquidation), hereby notifies the general public of the final call for dividend declaration to depositors, creditors of these banks.

    “We, therefore, advise all eligible depositors and creditors of these banks to either meet NDIC officials in any of the NDIC Offices.

    “They can also visit the claims page on NDIC website on www.ndic.gov.ng for the verification of their claims, commencing from Sept. 5 till Oct. 14,’’ the Corporation said.

    The Corporation also said it was in the process of paying insured and uninsured deposits to depositors of Eurobanc Savings and Loans,Grace field Microfinance Bank and Okporo Microfinance Bank(MFB).

    It said it was also in the process of paying liquidation dividends to the depositors and ex-staff of MFBs.

  • Unclaimed dividends hit N180bn as SEC strives to achieve zero%

    Alhaji Lamido Yuguda, the Director-General, Security and Exchange Commission (SEC), says the commission is working to ensure it reduces the level of unclaimed dividends to zero per cent.

    In an interactive session with editors on Tuesday in Lagos, Yuguda said that unclaimed dividends rose to N180 billion as at Dec. 31, 2021.

    “This continues to be an important area of concern for the commission and we have been engaged in tackling it in the capital market,’’ the director-general said.

    Although N180 billion unclaimed dividends is a large amount, Yuguda said that the amount constituted only five per cent of the quantum of dividends declared in the entire capital market.

    “That is a large amount, but when you compare that with the total amount of dividends declared in the Nigerian capital market, these unclaimed dividends amount to about five per cent of the total amount of dividends declared.

    “Although, five per cent is still not the ideal number, it should be zero per cent.

    “Every person, who has come to the capital market and invested money, should be able to get his dividends as and when due,’’ Yuguda said

    He also said that SEC is working with the Central Securities Clearing System (CSCS) and other stakeholders in the industry to address the issue of unclaimed dividends.

    “The SEC has been working with CSCS, Registrars and the stockbrokers to make sure that every market appraisal makes it easy for the clients to fill their mandate form.

    “We are also making sure that investors continue to get their dividends.’’

    He also said that the Federal Government intervened last year by enacting a Finance Act on Unclaimed Dividends Fund.

    “The government is looking at unclaimed monies both in the capital market and the banking system and established a fund that will actually access through dividends that have been unclaimed for a certain number of years that meet certain basic definitions.

    “It is not that the government has taken over the money, but when the claimants eventually surface, there is a system for recovering.

    “Every person who has come to the capital market and invested money should be able to get his dividends as and when due,” he added.

    He noted that SEC would continue working to ensure it gets to zero per cent level, saying that “there is a need for strong investor education to achieve success.

  • SEC laments high level of unclaimed dividends

    SEC laments high level of unclaimed dividends

    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.

  • Nigeria’s unclaimed dividends hit N158.44bn in 2019

    Nigeria’s unclaimed dividends hit N158.44bn in 2019

    The total unclaimed dividend figure in the Nigerian capital market stood at N158.44 billion as of December 2019, the News Agency of Nigeria (NAN) reports.

    Data obtained exclusively by NAN from the Securities and Exchange Commission (SEC) show that the figure is still on the increase in spite of e-dividend registration introduced by SEC in 2015.

    NAN reports that dividend is the distribution of a portion of the company’s earnings, decided and managed by the company’s board of directors, and paid to a class of its shareholders.

    Unclaimed dividend is recorded when a shareholder fails to claim an already paid dividend after six months.

    NAN reports that breakdown of the components shows that unclaimed dividends with companies (15 months and above) stood at N119.01 billion.

    The ones with registrars amounted to N14.64 billion and unclaimed dividend less than 15 months old stood at N24.77 billion.

    Speaking with NAN on reasons for increase on unclaimed dividend, Mr Okey Umeano, SEC Head, Office of the Chief Economist, attributed it to large number of unclaimed shares.

    Umeano said the quantum of unclaimed dividend would always be on the increase as long as there were unclaimed shares.

    “The main issue why unclaimed dividend is rising is because we have a large number of unclaimed shares,” he said.

    According to him, many investors during the banking consolidation bought shares with different names as well as other people’s names which they were yet to rectify.

    Umeano explained that as companies declare dividend, those accounts would equally be paid, leading to increase in unclaimed dividend figure.

    He said that the commission introduced a forbearance window for multiple accounts to enable investors that bought shares with different names to regularise their accounts in order to reduce the quantum of unclaimed dividends.

    “SEC gave a window for people to come and rectify the multiple subscription thing.

    “Many people have still not been able to claim their own because some of them have forgotten the names they used.

    “Some have not been able to prove to their stockbrokers that they are the owners of the shares.

    “So, we still have a large chunk of those shares, and anytime dividends are paid, those shares are not claimed and those people don’t get their dividends,” Umeano said.

    He said that over N100 billion out of the unclaimed dividend figures were from those unclaimed shares.

    “Until we bring down that number of unclaimed shares, this unclaimed dividend problem will continue,” Umeano said.

    On the way forward, he said the commission would continue to put pressure on all the people involved in order to curb the problem of unclaimed dividends.

    Umeano called on investors to go and prove ownership of their shares, noting that SEC was not prosecuting anybody.

    “SEC has given them amnesty to go and claim their shares and as people are claiming those shares, unclaimed dividends number will go down,” he said.

    Mr Adebayo Adeleke, an investor and Managing Director, Lancelot Ventures Limited, said more efforts were on to ensure that source documents for share transactions contain bank details of investors.

    Adeleke said the hike in unclaimed dividends might be due to the recent listings of highly capitalised stocks such as MTNN, Airtel Africa , BUA Cement, among others, which may have pushed the figures upward.

    He said companies should be encouraged to publish the list of unclaimed dividends in national dailies, especially those years that were close to being statute barred.

    Adeleke stressed the need for more enlightenment for shareholders to embrace e-dividend payment platform.

  • Fidelity Bank proposes payment of N3.2bn dividend to shareholders

    Fidelity Bank Plc is proposing a N3.2 billion dividend payout to shareholders. The payout followed the bank’s strong financial result for the year-ended December 31, 2018.

    The bank posted a 4.8 per cent growth in Gross Earnings from N180.2 billion to N188.9 billion while Profit Before Tax soared by 30.6 per cent to N25.1 billion, when compared with the N19.2 billion it recorded in 2017.

    Profit After Tax grew by 29 per cent from N17.7 billion in 2017 to N22.9 billion in 2018, while Operating Income rose by 13.9 per cent from N85.9 billion to N97.2 billion. Customer Deposit, which is a measure of consumer confidence rose by 26.3 per cent from N775.2 billion to N979.4 billion just as total assets grew by 24 per cent from N1.4trillion to N1.7trillion.

    We are delighted by our 2018 numbers, which clearly shows a sustained performance trajectory. We are growing our market share with continued traction in our chosen business segments. We recoded double digits growth in interest income on our liquid assets, digital banking, FX and other income lines,” said Fidelity Bank CEO, Nnamdi Okonkwo.

    As seen in recent years, the bank’s digital retail banking approach has continued to yield positive results. Savings recorded its fifth consecutive year of double digits growth with a 27.7 per cent increase to peak at N228 billion. ”Savings accounts for over 23 per cent of our total deposits, an attestation of our increasing market share in the retail segment,” he said.

    Okonkwo was also enthused with the progress of its digital banking play stating that over 42 per cent of customers are now enrolled on the bank’s mobile/internet banking products and more than 81 per cent of total transactions done on digital platforms, resulting in 25 per cent of fee-based income, coming from digital banking.

  • SEC extends deadline for issuance of dividend warrants to Dec. 31

    SEC extends deadline for issuance of dividend warrants to Dec. 31

    The Securities and Exchange Commission (SEC) has extended the deadline for stoppage of issuance of physical dividend warrants in the nation’s capital market to Dec. 31, 2017.

    Mr Naif Abdussalam, SEC Head, Corporate Communications disclosed this in an interview with the News Agency of Nigeria (NAN) on Wednesday in Lagos.

    Abdussalam said that the deadline was extended to give room for investors to key into the e-dividend payment platform.

    He told NAN that the extension became necessary to perfect the commission’s rules on issuance of dividend warrants that was exposed to the public a week ago.

    Abdussalam stated that the commission’s issuance of dividend warrants would be a thing of the past by Dec. 31, 2017, with the amendment of the rules and keying into the e-dividend payment platform by more investors.

    NAN reports that SEC had in 2016 announced June 30, 2017, as deadline for issuance of physical dividend warrants to shareholders by quoted companies to tackle unclaimed dividends and mitigate the risks associated with warrants.

    He also said that SEC had extended the underwriting cost of investors e-dividend registration to Dec. 31, 2017, from against the earlier underwriting deadline of June 30, 2017.

    Abdussalam said that the deadline was also extended to give room for enrolment of more investors in the e-dividend payment platform.

    “E- dividend simply refers to an online system of paying dividends to investors when companies declare dividends, which are the profits meant for investors, rather than send it by post, they will just wire it to the investor’s bank account.’’

    He stated that the commission’s decision to continue to underwrite the cost till Dec. 31, was part of its developmental role to curb the menace of unclaimed dividend.

    The commission’s spokesman said that the e-dividend would strengthen the KYC of all investors in the capital market to curb unclaimed dividend and stoppage of unauthorised sale of shares in the market.

    Abdussalam added that loss of dividends would be a thing of the past with the e-dividend payment platform.

    He said that the commission would continue to leverage on the BVN initiative of the Central Bank of Nigeria (CBN) to boost investors’ confidence in the nation’s capital market.

    NAN reports that Mr Mounir Gwarzo, SEC Director-General at the Capital Market Committee meeting in May said that 2.2 million investors had mandated their accounts for the e-dividend payment policy as of April 30, 2017.

    He stated that the commission would urge all listed companies to participate in the on-going enlightenment campaign on e-dividend by informing their shareholders at Annual General Meetings (AGM) on the processes put in place to increase the figure.

    Gwarzo explained that the e-dividend form could be obtained and properly filled at bank branches or in the office of a registrar and stock broking firms, or could be downloaded and filled by individuals.

    He added that the major aim of the e-dividend payment system was to curb unclaimed dividends in the market, noting tha unclaimed dividend figure was reducing due to the e-dividend.

    NAN also reports that major shareholder groups in the capital market had been calling for the extension of the deadline to allow more investors to embrace the initiative.

     

    NAN