The Securities and Exchange Commission (SEC) has provided a clear pathway for Nigerian investors to reclaim unclaimed dividends, with a revamped electronic system that allows for full processing without visiting a bank or registrar.
Understanding Unclaimed Dividends in Nigeria
Dividends are portions of a company's earnings distributed to its shareholders. Once declared, eligible investors receive payments based on their shareholdings. However, dividends can remain unclaimed when shareholders change addresses or bank accounts without updating their records, fail to register for e-dividend payments, lose track of old investments, or inherit shares without knowing about them, according to a report by The Nation.
The SEC has continued to encourage shareholders to update their records and register for electronic dividend payments, a move designed to reduce the large pool of unclaimed dividends in Nigeria's capital market. The regulator operates an online database where investors can check whether their shareholding accounts have been registered for electronic dividend payments.
Step 1: Check if You Have Unclaimed Dividends
The first step is to search the SEC unclaimed dividends portal. Enter your first and last name to check whether you have shareholding accounts that have not been mandated for e-dividend payments. Investors can also search using the name of a deceased relative whose shares they may have inherited.
If a record appears, take note of the company connected to the investment and, importantly, the registrar responsible for managing the shares. SEC's guidance says identifying the registrar is necessary for processing outstanding dividend claims.
Step 2: Register for Electronic Dividend Payment
Investors can proceed through the NIBSS self-service interface linked to SEC's revamped e-DMMS portal. The system allows shareholders to apply electronically to mandate their bank accounts for dividend payments without physically visiting a bank or registrar. Investors may alternatively approach their registrar or bank to complete the registration.
The process links the shareholder's investment records to an eligible bank account so that outstanding and future dividends can be credited electronically. SEC said the revamped system was introduced specifically to make dividend collection easier and curb the continued accumulation of unclaimed funds.
Step 3: Complete Verification Requirements
Investors should ensure their personal and banking information is accurate. SEC has previously directed market operators to maintain updated investor information, including bank account details, Bank Verification Number, telephone number and email address.
Additional documentation may be required by the relevant registrar depending on the circumstances surrounding the investment. Claims involving a deceased shareholder generally require additional estate documentation to establish that the person making the claim is legally authorised to administer the assets.
Importantly, the SEC clarified in 2025 that public companies and registrars should continue honouring qualifying requests for unclaimed dividends pending the operationalisation of the Unclaimed Funds Trust Fund.
SEC's Nationwide Campaign to Recover Unclaimed Dividends
Legit.ng earlier reported that the SEC has kicked off a nationwide campaign to help Nigerian investors reclaim approximately N270 billion in unclaimed dividends and other outstanding capital market funds. The exercise was launched with a town hall meeting in Lagos and is designed to raise awareness about how investors can verify and recover their entitlements, including funds held under the National Investor Protection Fund (NIPF).
