The Securities and Exchange Commission (SEC) has instructed all publicly listed companies in Nigeria to process and fulfill shareholders’ requests for unclaimed dividends. This directive is intended to safeguard investors’ rights and ensure that companies adhere to regulatory standards. The move is expected to bring long-awaited relief to shareholders and reflects the SEC’s ongoing commitment to transparency and accountability in the capital market.
The SEC also urged public companies and Registrars to cease classifying unclaimed dividends older than 12 years—especially those predating the Finance Act 2020—as ‘statute-barred.’
Reaffirming Section 60 of the Finance Act, the Commission noted that dividends unclaimed for more than six years must be transferred to the Unclaimed Funds Trust Fund (UFTF), where shareholders can still access them through legitimate claims.
Additionally, the SEC clarified that shareholders can still claim dividends that are not statute-barred (i.e., unclaimed for less than 12 years) as of December 31, 2020, the date the Finance Act 2020 came into effect.