Kayode Tokede 

Capital Market Registrars, has faulted reports that it is responsible for unclaimed dividends in the Nigerian capital market,  calling  on key stakeholders and investing public  to work  together in good faith to build a more transparent, inclusive, and responsive system as against pointing fingers at registrars.

This was the view of Chief Executive Officer, Capital Market Registrars, Mr. Jonathan Eborah  while reacting to the growing public concern on unclaimed dividends in the Nigerian Capital Market.

In his words, “the recurring problem of unclaimed dividends though cast a shadow over the credibility of the capital market, with many retail investors expressing frustration at the role of registrars but blaming registrars exclusively oversimplifies a much broader and more complex issue”

While noting that registrars are just one part of a broader value chain that includes stockbrokers, issuing companies, banks, and regulators. Holding them solely responsible ignores the collaborative nature of capital market operations, he continued.

While listing factors responsible for dividends often remaining unclaimed such as, multiple accounts created with different names or pseudonyms, shareholders’ failure to update bank details or contact information, estate complications after the death of shareholders, delays by banks in validating dividend mandates and general investor ignorance about claim procedures Eborah said such unclaimed dividends are a product of systemic challenges, not merely the inefficiencies of registrars.

Commenting on the most criticised aspects of the dividend claim process which is identity verification, Jonathan Eborah explained that registrars rely on Bank Verification Number (BVN), National Identity Number (NIN), and signature verification to verify claims. These are not excuses but part of risk management and regulatory compliance to ensure that payments are made to the rightful owners. This, he said, is crucial in an environment where identity theft, fraud, and impersonation are real threats.

Other factors that cause delay in processing dividend claims according to Eborah include shareholders providing incorrect or inconsistent data, banks’ delay in validating or updating mandates, and investors’ failure to follow up on initial submission as well as missing documentation or legacy issues relating to paper-based systems from decades ago.

He therefore urged investors to bear some responsibilities by ensuring they complete e-dividend mandates, participate in clinics together with the Security and Exchange Commission (SEC), participate in AGMs, and partner with regulators and stockbrokers for sensitization efforts. 

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