In a move aimed at addressing investor concerns and bolstering participation in the capital market, the Securities and Exchange Commission (SEC) has unveiled plans to host a series of investor clinics across various regions of Nigeria throughout 2024.
This initiative comes in the wake of a highly successful three-day investor clinic held recently in Yobe State, organized jointly by the SEC and the Gombe State Investment and Property Development Company.
The forthcoming clinics are designed to address critical issues surrounding unclaimed dividends and related matters. Danladi Mohammed, head of the SEC’s Zonal Office in Kano, noted the significance of these clinics in educating investors about the advantages of e-dividend registration, the dematerialization of share certificates, and the direct cash settlement system.
According to Mohammed, the clinics aim to empower investors with the knowledge necessary to effectively manage their investments and mitigate the substantial levels of unclaimed dividends, which reportedly amounted to N190 billion as of August 2023.
A statement from the SEC emphasized the importance of the initiative as a key step towards reducing the prevalence of unclaimed dividends, particularly in regions where investor awareness and participation may be lacking. The Capital Market Development Master Plan 2015–2025 underscores the vital role of such initiatives in ensuring that investors can rightfully claim their dues.
“According to the Director General [Lamido Yuguda], the core mandate of the Commission is to regulate and develop the capital market of Nigeria to be at par with its counterparts in other jurisdictions in all ramifications and the Commission is not resting on its oars to achieving and sustaining that mission. The Commission will embark on a series of investor clinics in 2024 in all the regions of the federation to provide the platforms for investors to reap the benefits of investing in the Capital Market,” the statement said.
Yuguda reaffirmed the Commission’s commitment to regulating and developing Nigeria’s capital market to meet international standards. He stressed the significance of investor engagement and outlined various strategies and measures in place to address the escalating issue of unclaimed dividends.
Recent developments have further highlighted the SEC’s dedication to enhancing the capital market’s contribution to national development. With President Bola Tinubu assuming office, the SEC has reiterated the market’s preparedness to support infrastructure development.
Yuguda expressed confidence in the Nigerian Capital Market’s capacity to facilitate capital mobilization through both domestic savings and foreign capital inflows, positioning it as a critical facilitator of the nation’s infrastructure objectives.
The upcoming series of investor clinics slated for 2024 are expected to offer tangible solutions to investors. By directly addressing the issue of unclaimed dividends, these clinics aim to restore investor trust and stimulate greater participation in the market.
The SEC’s nationwide investor clinics are designed to tackle longstanding challenges within the capital market. By educating investors and providing practical solutions, these initiatives seek not only to reduce unclaimed dividends but also to invigorate broader market participation, ultimately contributing to the overall development of the Nigerian economy.
