Nigerian Exchange Group (NGX Group) online platform called ‘NGX Invest’ is expected to streamline the dividend distribution process, which aims to reduce the incidence of unclaimed dividends in the country.
The platform, which is also used for the distribution and subscription of public offerings and rights in the Nigerian capital market has gained popularity among investors, successfully onboarding a diverse range of participants. The platform’s e-dividend system represents a significant improvement over traditional paper-based methods.
The group managing director/chief executive officer of NGX Group, Temi Popoola elaborated on the advantages of the digital solution, saying, “NGX Invest allows investors to designate their preferred account for dividend payments. The system leverages real-time identity verification through NIBSS, transmitting this information directly to the registrar, thereby significantly streamlining the dividend distribution process.”
Popoola further explained the potential of the platform’s integration with the Bank Verification Number (BVN) system.
According to him, the integration of BVN with the designated dividend account opens up possibilities for aggregation and consolidation of dividend payments from multiple shares linked to a single BVN. This feature has the potential to greatly enhance efficiency in dividend management.
“This innovative approach to dividend distribution is expected to enhance overall efficiency and convenience for investors. By reducing the need for additional follow-up work typically required in traditional paper offerings, NGX Invest is positioning itself as a game-changer in Nigeria’s capital market,” he pointed out.
He added that, “the e-dividend system is just one of many features designed to improve the experience of stakeholders in the public offerings value chain. As NGX Invest continues to evolve, it promises to play a crucial role in modernising and streamlining investment processes in Nigeria’s financial markets.”
