Nigerian Firms Face Growing Unclaimed Dividends Crisis: N30 Billion In Backlog

Nigerian Firms Face Growing Unclaimed Dividends Crisis: N30 Billion In Backlog

Concerns are rising as unclaimed dividends from five Nigerian listed firms have reached N30 billion, as of December 31, despite efforts by the Securities and Exchange Commission (SEC) to address the issue. This growing backlog is raising questions about the effectiveness of the SEC’s measures and the companies’ willingness to tackle the problem……..READ MORE

Among the firms, Dangote Cement Plc saw its unclaimed dividends rise from N4.4 billion in 2022 to N5.2 billion in 2024. Lafarge Africa Plc’s backlog grew from N2.07 billion in 2023 to N2.95 billion in 2024, while Nigerian Breweries Plc saw its total increase from N5.5 billion to N7.1 billion in the same period. UAC Nigeria Plc’s backlog also grew from N4.95 billion to N5.4 billion. Nestlé Nigeria Plc bucked the trend but still reported a high N8.9 billion in unclaimed dividends.

Despite the SEC’s e-dividend initiative, which mandates direct payment to shareholders’ accounts, and other compliance measures, unclaimed dividends continue to rise. This issue particularly affects small retail investors, who are unaware of their accruing dividends, and heirs of deceased shareholders, who face bureaucratic hurdles in claiming them.

The increasing backlog signals poor shareholder engagement, undermining investor confidence and the efficiency of the capital market. This trend has been escalating for decades, with unclaimed dividends growing from N2 billion in 1999 to a whopping N215 billion in 2024. Stakeholders urge the government to introduce practical measures to resolve this issue, including addressing legacy problems like technological inefficiencies and poor identity management.