The proposed plan by the Federal Government to manage unclaimed dividends, projected to hit N200bn by the end of this year, has drawn the ire of capital market operators on the adverse effects on investor confidence and future growth of the market. In the 2020 Finance Bill, there is a proposal for the creation of an unclaimed dividend and un-utilised bank balance trust fund wherein dividends declared and unclaimed would be warehoused and owed as a perpetual debt to shareholders. Addressing the Investigative Arm of House Committee on Capital Market and Institutions recently, the Chairman, Association of Securities Dealing Houses of Nigeria, Onyenwechukwu Ezeagu, explained that capital market regulators and operators had leveraged technology to put in place many initiatives to address the issue of unclaimed dividends. He said, “Generally, the incentives for savers and capital providers in the capital market is the expectation of dividends and capital appreciation. Amolegbe described the bill as objectionable at this stage of the market.

Source: Punch November 23, 2020 05:03 UTC