The Securities and Exchange Commission (SEC) Nigeria has flagged off a nationwide enlightenment campaign to help Nigerians recover unclaimed dividends and other monies arising from capital market transactions.
The campaign, which began with a town hall meeting in Lagos on Thursday, is aimed at sensitising investors on the existence of unclaimed monies, the role of the National Investor Protection Fund (NIPF) and the procedures for verifying and recovering legitimate claims.
Speaking on the initiative, the Director-General of the commission, Dr. Emomotimi Agama, who was represented at the event by the Director, Registration and Exchanges, Market Infrastructure Department, Hafsat Rufai, said the initiative was necessary to ensure that funds belonging to investors were returned to their rightful owners.
He listed some of the unclaimed monies administered by the NIPF as including returns monies from public offers, scheme consideration from mergers, acquisitions and corporate restructuring transactions, as well as other funds belonging to investors that had remained unclaimed.
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The capital market regulator maintained that the commission considered it unacceptable for investors’ funds to remain unclaimed, adding that many investors and their families are either unaware that such monies existed or do not know the procedures for recovering them.
The Director-General stressed: “The Commission considers this situation unacceptable. Funds belonging to investors should ultimately find their way back to their rightful owners.”
Disclosing that the SEC Board has approved a nationwide public enlightenment campaign to sensitise Nigerians on unclaimed monies, the role of the NIPF and the process for making legitimate claims, Agama added that the Lagos programme marked the commencement of the outreach, which would subsequently cover the six geopolitical zones and the Federal Capital Territory.
He further disclosed that the commission would also use electronic and social media platforms, its official website and other communication channels to reach more Nigerians, while continuing to publish and periodically update the list of companies whose corporate actions had resulted in unclaimed monies.
The investment expert said the campaign would also address the transmission of securities following the death of an investor, noting that families were often unaware that their deceased relatives owned shares or other capital market investments.
He said even when beneficiaries were aware of such investments, many lacked knowledge of the legal and administrative procedures required to obtain probate or letters of administration and transmit the investments to the rightful beneficiaries.
The SEC boss said: “As a result, valuable investments and return on investments sometimes remain inaccessible for many years, thereby denying beneficiaries the financial benefits intended for them.”
Agama said the Lagos programme included an expert session on probate administration and the transmission of securities to demystify the process and provide practical guidance to investors and their families.
While urging investors to maintain proper records of their investments and encouraged families to take steps to preserve inherited wealth, the Director-General also warned Nigerians against Ponzi schemes and other fraudulent investment arrangements in view of the associated risks in such adventures.
Speaking at the forum, the representative of the Lagos State Attorney-General and Commissioner for Justice, Lawal Pedro, SAN, who is also a Deputy Director in the Ministry of Justice, Olujoke Ogunojemite, commended the SEC for extending the campaign to Lagos and recognising the role of legal institutions in resolving issues relating to unclaimed dividends and other assets.
She said the issue had a practical impact on beneficiaries who were unable to access assets after the death of their loved ones and restated the ministry’s commitment to ensuring that legal processes did not become barriers to beneficiaries seeking to recover legitimate assets.
Assuring that the state government “will continue to provide partners for citizens to resolve such issues”, the legal expert described the SEC’s outreach as commendable as it would help restore assets to their rightful beneficiaries.
Ogunojemite maintained that the Lagos State Government remained ready to collaborate with the SEC and other stakeholders to promote investor education and strengthen financial inclusion in the country.
