The Independent Shareholders Association of Nigeria (ISAN) has strongly condemned the recent legislation mandating the transfer of unclaimed dividends from company registrars to the Central Bank of Nigeria (CBN) for management.
The group, in a statement signed by its national coordinator, Moses Igbrude, condemned the National Assembly’s decision to pass legislation requiring the transfer of all unclaimed dividends from company registrars to accounts managed by the Securities and Exchange Commission (SEC), as opened by the Debt Management Office in the Central Bank of Nigeria (CBN).
ISAN said, this move is a gross violation of shareholders’ rights, a betrayal of investor trust, and a dangerous precedent that threatens the sanctity of private property and capital market integrity.
It called for reform, rather than confiscation, saying efforts should focus on reforming the claims process at the registrar level through technology, public education, and standardization, not through centralisation and state seizure.
ISAN, urged President Bola Tinubu to withhold assent to this bill, saying, ‘if already signed, we demand an immediate suspension pending judicial review.’
It said, it is mobilising legal resources to challenge the law in court, saying the legislation is a violation of ownership rights.
It insisted that, ‘unclaimed dividends are not government revenue. They remain the legal property of individual investors and their heirs, regardless of the time elapse.’
It added that, the attempt to centralise and manage such funds under CBN control is a form of indirect expropriation, besides undermining market confidence in Nigeria’s capital markets at a time when local and international investors need assurance that their returns will be protected, and not confiscated under state pretexts.
The group pointed out that there was lack of broad consultation with stakeholders such as shareholders, registrars, and other capital market players in a public hearing before the bill was passed, as this reflects a disturbing disregard for participatory governance and due process.
ISAN noted that, “there are no clear frameworks for how the SEC intends to manage these funds, what returns will be offered to rightful owners, or how and when claims will be honored. This is a recipe for bureaucratic mismanagement and corruption.”
It warned that the decision could be counterproductive to financial inclusion, stressing that, rather than simplifying the process for shareholders to recover the unclaimed dividends, this law adds another layer of opacity and complexity, especially for rural and aging investors who already face hurdles in reclaiming dividends.
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