Investors and shareholders who may have lost hope of recovering their shares and stakes in the N130 billion unclaimeds dividend can now heave a sigh of relief as a Securities & Exchange Commission (SEC)-approved product has been introduced by a Nigerian investment company, Integrated Trust to address this challenge.
As at December 2019, unclaimed dividends in Nigeria amounted to N130 billion, from N103.1 billion in December 2016, according to market sources. Despite the best efforts of SEC in reducing the amount of unclaimed dividends through the introduction and enforcement of an e-dividends payment system, the amount has continued to increase.
The benefits of the new product include alleviating the suffering of investors over missing or lost investments; reducing the incidence of missing shares and unclaimed dividends as well as fixed-income securities in the Nigerian Capital market, and restoration and enhancement of investors’ confidence and bringing them back to invest in the Nigerian capital market.
Dele Lawore, group managing director/CEO, Integrated Trust & Investment Limited, said that as at Thursday, over 200 clients had subscribed to the ISF product and had recovered their missing shares and dividends.
The product – Integrated Shares Finder (ISF) is a financial advisory product designed to help the Nigerian investors to locate and recover their missing shares, loan stock and other capital market assets, so that they can enjoy the benefits due to them on their investments.
A recent study of the Nigerian stock market by Integrated Trust revealed that many shareholders are not aware of the true status of their shareholding in many of the companies listed on The Nigerian Stock Exchange (NSE) and NASD Plc, OTC market.
Many don’t know the location of their shares, the quantity of their holdings, the value of the shares, the benefit accrued in terms of unclaimed dividends or bonus shares. Some shareholders do not receive any information from their companies in form of Annual reports, Chairman’s letters, Scheme of arrangement documents, Notices among others.
“Inadequate investor information is a major challenge which has contributed greatly to low investor confidence and low participation of Nigerians in the stock market in recent times,” Lawore said at the official launch of the product in Lagos on Thursday.
Investor confidence in the Nigerian stock market history rose to its peak during the banking industry recapitalisation of 2004/5 when many banks had to offer their shares to the Nigerian public for the first time. Superior marketing skills and financial resources of the banks were deployed, with unprecedented public interest in shares investment.
Biodun Fawonmi, a former director and shareholder, for Nigerians to see this as an asset, pointing out that it was important for everybody to look for this asset.
“It is like mining gold or whatever; as you go, strongly believe that it is there, but you need to find it and you have the capability to find it because of the dearth of information in this environment,” he said.
