Shareholders reject CBN control of unclaimed dividends, demand reform
BY TEMITOPE ADEBAYO
The Independent Shareholders Association of Nigeria (ISAN) has firmly rejected the new legislation mandating the transfer of unclaimed dividends from company registrars to accounts managed by the Central Bank of Nigeria (CBN).
In a statement signed by its National Coordinator, Moses Igbrude, the group condemned the law as a gross violation of shareholder rights and a dangerous move that could erode investor confidence in Nigeria’s capital markets.
The controversial legislation—passed by the National Assembly—requires all unclaimed dividends to be transferred from registrars to the Securities and Exchange Commission (SEC), which will oversee accounts managed by the Debt Management Office (DMO) under the CBN.
ISAN argues this approach amounts to indirect expropriation of private property and undermines the sanctity of ownership rights, stressing that such funds remain the legal property of individual investors or their heirs.
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Calling for immediate suspension of the law pending judicial review, ISAN urged President Bola Tinubu not to assent to the bill, or to reverse it if already signed. The group said it is mobilising legal efforts to challenge the constitutionality of the legislation and protect investor assets.
ISAN criticised the lack of stakeholder engagement, noting that shareholders, registrars, and other capital market operators were not consulted in a public hearing prior to the bill’s passage. The absence of transparency and due process, the group warned, sets a troubling precedent for participatory governance and investor protection.
The group also raised alarms over the lack of a clear framework on how the SEC plans to manage these funds—questioning how returns will be calculated, when claims will be honoured, and how rightful owners will be identified. According to ISAN, the law introduces an additional layer of complexity that could discourage financial inclusion, particularly for rural and elderly investors who already face significant challenges in reclaiming dividends.
Rather than centralising and seizing unclaimed funds, ISAN called for reforms at the registrar level, including digitalisation, public education, and process standardisation. The group insists that safeguarding ownership rights and simplifying dividend recovery procedures are essential to maintaining trust in Nigeria’s capital market.
