BY BONNY AMADI
Tension has continued to rise in the Nigerian capital market community, especially the retail investors segment who have always been at the receiving end of every government policy relating to the market.
This time, the issue of unclaimed Trust Fund bill, which earlier appeared to be rested, but resurfaced in the national assembly in another configuration, as unclaimed dividend bill, which differs from the earlier proposed unclaimed Dividend Trust Fund.
As the federal government through the country’s national; assembly finalizes process of taking over shareholders unclaimed dividends, through the Central Bank of Nigeria (CBN), retail shareholders under the umbrella of Independent Shareholders Association of Nigeria (ISAN) have blatantly condemned the move, and promised to deploy all legal means to ensure that shareholders are not swindled of their investment proceeds through the bill as being considered by the national assembly.
It will be recalled that a bill concerning unclaimed dividends in Nigeria currently in the National Assembly has been considered for passage. Shareholders argued that the funds remaining with the Registrars continue to contribute to growth of the capital market, adding that any attempt to clean the funds from the issuing registrars will be subjected to the government’s unbusinesslike firm grip.
This bill proposes transferring unclaimed dividends, currently held by registrars, to the Central Bank of Nigeria (CBN). This has sparked concerns among shareholders and analysts about potential negative impacts on investor confidence and the capital market.
In Nigeria, unclaimed dividends in the capital market are currently estimated to be N215 billion. This figure represents a significant amount of money that has not been collected by shareholders from their investments.
The current bill waiting for approval at the national assembly is geared towards mopping up the funds form the company’ registrars to the Central bank of Nigeria (CBN), a move which retail investors say, erodes investor confidence, and sends wrong signals on the unpredictability of federal governments intrusion in private business.
They maintained that capital markets all over the world are private business, and the funds therein also belong to the private sectors and have no bearing with government, and any attempt to mop up the unclaimed dividend funds by the government sends wrong signals not only to the local market, but also the global investment community.
The Independent Shareholders Association of Nigeria (ISAN) strongly condemned the National Assembly’s recent decision to pass legislation requiring the transfer of unclaimed dividends to the Central Bank of Nigeria (CBN)
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