Business
Stakeholders Fault SEC Over e-Dividend Implementation
Chairman, Rivers State Independent Electoral Commission (RSIEC), Prof Augustine Ahiauzu (middle), addressing staff of his commission at an interactive session. He is flanked byCommissioner for Political Parties Affairs, Mrs Kattryn Ajaji (right) and Commissioner for Adhoc Staff Recruitment, Dr. Mrs Vinida Fubara (left). Photo: Chris Monyanaga
Some shareholders in the capital market have blamed the Securities and Exchange Commission (SEC) for failure to implement the e-dividend policy four years after it was launched.
They told our correspondent in Lagos on Tuesday that SEC had failed to put up the required massive enlightenment campaigns on the policy.
Electronic dividend payment is the process of crediting shareholders’ accounts within 24 hours after a company pays dividends. It was launched by SEC in February 2008.
Mr Boniface Okezie, the President, Progressive Shareholders Association of Nigeria, said that SEC might have failed to enlighten the public because of its plan to establish unclaimed dividend trust fund.
He said that e-dividend, if implemented, would reduce the incidence of unclaimed dividends to the barest minimum.
Okezie said that SEC also failed to meet company registrars, service providers and banks on problems being encountered in remitting dividends.
He said that most shareholders were not interested in the e-dividend policy due to some banks’ insistence on current accounts for e-dividend payment.
Okezie advised SEC to liaise with the Central Bank of Nigeria (CBN) to ensure that all commercial banks accepted both savings and current accounts for e-dividend payment.
Alhaji Gbadebo Olatokunbo, a founding member of Nigeria Shareholders Solidarity Association (NSSA), said that the country’s poor postal system contributed to the problem of unclaimed dividend.
He said that uncooperative attitude of some banks on payment of dividends into savings accounts made some investors to shun the policy.
Olatokunbo, however, said that the shareholder groups were doing their best in educating investors on the benefits of the policy.
President of NSSA, Mr Timothy Adesiyan, said that investors with small dividends were being discouraged from subscribing to the policy due to insistence of banks on payment into current accounts.
According to Adesiyan, most registrars cannot implement the policy because some shareholders failed to return their e-dividend payment forms after completion.
Another shareholder, Mr James Osoka, said that many investors, especially those outside the cities, were not aware of the policy.
Osoka advised SEC to use the three major languages in the country to enlighten shareholders on the policy so as to reduce the incidence of unclaimed dividends.
He said that enlightenment campaigns on the policy should not only be done in the cities.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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