E-dividend Regime for the Nigerian capital market
February 27th, 2008 Ugonna Maduagufor || ugonna@stockmarketnigeria.com
(by Ugonna MADUAGUFOR)
The 28 of February 2008, would mark the launching of e-dividend regime for the Nigerian capital market by the minister of finance, Shamsuddeen Usman in Abuja the federal capital territory of Nigeria. The electronic dividend system known as e-dividend means that dividends would be automaticaly credited into shareholders nominated account the very day announced as date of dividend payment not exceeding 24 hours. According to SEC (Securities and Exchange Commission), already the large volume of unclaimed dividends within the Nigerian capital market system has hit a massive N19 billion unclaimed money.
Shareholders would henceforth, have to furnish their stockbrokers with information regarding the bank account with which they wish to receive any paid dividend or make such information available to the relevant company registrar, where shareholder does not have a stockbroking firm managed securities account. From the comments of SEC’s Director of Research and planning, Mr Sylvester Akele, the positve development is joint effort of stake holders including: Securities and Exchange Commission (SEC); Nigerian Interbank Settlement System; Central Bank of Nigeria (CBN); Central Securities Clearing System (CSCS); Registrars; Shareholders forum associations etc to eliminate the problem of unclaimed dividends. If the e-dividend system is well embraced by all stakeholders, would further enhance liquidity of returns and as such boost investors trust and confidence in the Nigerian capital market.
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