How to Fix ‘Unclaimed Dividends’ Problems in Nigeria

Many Nigerians invest in stocks. When companies make profits, they share part of those profits with people who own shares. This sharing is known as dividends. But a large amount of those dividends are never claimed by shareholders. This is the problem of unclaimed dividends.

Unclaimed dividends mean money that companies have set aside to pay to shareholders, but the shareholders do not receive. It may be because people lost record of them, did not update their bank details, died without heirs knowing, registrars have poor information, identity issues, or procedures are too hard.

Unclaimed dividends in Nigeria are huge. In 2024, they were over ₦190‑₦215 billion.

What is a Dividend?

A dividend is a payment by a company to its shareholders. When a company makes money (profit), it may share some with its shareholders. Dividends are often paid in cash, but sometimes as extra shares.

What “Unclaimed Dividend” Means

An unclaimed dividend is when a shareholder is supposed to receive a dividend, but for some reason, they don’t get it. The reasons can include:

• The shareholder did not update bank account or contact information

• The shareholder changed names, moved, or died, and heirs don’t know or cannot prove claims

• The registrar (company that keeps records of shareholders) doesn’t have correct identity or bank details

• The shareholder didn’t fill required e‑forms or did not sign up for electronic dividend mandates

• Legacy paper share certificates whose owners are unknown or data missing

Related Terms & LSI Keywords

• Electronic dividend mandate / e‑dividend portal

• Registrar of companies / share registrars

• Securities and Exchange Commission (SEC) Nigeria

• Identity management (BVN, NIN)

• Bank‑account linkage for share dividends

• Statute‑barred dividends (legal time limits)

• Unclaimed Funds Trust Fund

• Investor education / financial literacy

How Big Is the Problem in Nigeria?

Understanding the size shows why fixing it matters.

• As of 2023‑2024, unclaimed dividends in Nigeria stood around ₦190‑₦215 billion.

• This figure has grown over the years. From about ₦2‑3 billion decades ago to tens of billions, now over ₦200 billion.

• Some large companies have very large individual unclaimed dividend amounts: e.g. Dangote Cement, Lafarge Africa, Nigerian Breweries, UAC, Nestlé Nigeria.

This lost or idle money belongs to investors, including small shareholders. It reduces confidence, hurts trust, and some people may never know the money is theirs.

Why Many Dividends Go Unclaimed: Causes of the Problem

Let’s examine the causes in detail. Fixing the problem means addressing these causes.

Cause 1: Poor Identity Management & Multiple Registrations

• Many shareholders have multiple names or slight name differences. They subscribed under different names.

• Some investors cannot be traced because their identities are incomplete or mismatched. For example, bank accounts not linked properly, missing BVN (Bank Verification Number), missing NIN (National Identity Number).

• Legacy share certificates, older records written long ago, sometimes lack proper identity or contact details.

Cause 2: Outdated Or Wrong Bank / Contact / Shareholder Records

• Investors may have moved house, changed bank, phone, but never updated these with registrars or brokers.

• Bank account linked to shareholding not known or not validated.

• Registrars have incomplete or wrong addresses, phone numbers, emails. Without these, companies cannot pay dividends.

Cause 3: Low Financial Literacy / Awareness

• Many small investors do not know dividends are unclaimed in their name.

• They may not know about the e‑dividend portal or steps to claim.

• Sometimes they assume dividends happen automatically, not realizing they need to fill forms, update details, etc.

Cause 4: Legacy Issues with Share Certificates and Paper Processes

• In older times, ownership was proved by physical share certificates. Some of those certificates are lost, destroyed, or owners can’t present them.

• The process to convert paper shares to electronic systems (CSCS etc.) is slow or complex for many.

Cause 5: Statute‑Barred Dividends and Legal Time Limits

• Under older law (Companies & Allied Matters Act, CAMA), dividends unclaimed after certain years become statute‑barred—meaning legally you may no longer be able to claim them.

• But recent regulatory changes may allow 12 years for claims or re‑opening of some claims. There is confusion about time limits.

Cause 6: Registrar & Company Inefficiencies

• Delays in verifying claims.

• Registrars sometimes have outdated or incomplete shareholder records.

• Slow processes in confirming identity, bank mandates, etc.

Cause 7: Technology/Portal Problems

• The e‑dividend portal or electronic dividend mandate systems have had data issues, glitches.

• Some registrars or companies are slow in implementing technology.

Cause 8: Death of Shareholders & Lack of Heir Information

• Many shareholders die and heirs don’t know about shares or dividends. No will or succession document.

• Heirs may find it hard to trace ownership, produce necessary legal documentation.

Cause 9: Legal & Regulatory Gaps

• Laws or regulations might not be clear about claims after long time.

• Enforcement of mandates is weak.

• Some companies or registrars treat dividends older than certain years as irrecoverable, even when laws allow claims.

Cause 10: Low Participation in E‑Dividend Mandate / Bank Mandates

• Not enough shareholders have signed up for e‑dividend mandates (linking bank accounts directly).

• Some don’t know about it; some find the process difficult or not trust it.

How Unclaimed Dividends Harm Investors and the Capital Market

It’s not just an annoyance. There are real harms.

For Individual Investors (Students, Working People)

• Losing out on income that you were promised. That could help with school fees, rent, savings.

• Inflation erodes value: money unclaimed today is less valuable later.

• Losing faith in stock market; may stop investing.

For the Capital Market

• Lower participation: If people believe that dividends won’t reach them, fewer invest.

• Reduced trust in listed companies, registrars, regulatory bodies.

• Worse perception by foreign investors: seen as inefficiency or risk.

For the Economy

• Idle money: funds that could be circulating are stuck.

• Less wealth accumulation & lower financial inclusion.

• Reduced capital market growth.

What Has Nigeria Done So Far: Current Reforms & Measures

Before suggestions, it helps to see what is already being done.

E‑Dividend Mandate & e‑Dividend Portals

• SEC introduced the electronic dividend mandate system (e‑dividend). Investors can register bank account details so dividends go directly without cheques.

• SEC is upgrading the e‑dividend portal via NIBSS (Nigeria Inter‑Bank Settlement System) to make it more user‑friendly.

Search / Self‑Service Portals for Checking Unclaimed Dividends

• SEC has a portal where shareholders can check if they have unclaimed dividends.

Regulatory Directives & Trust Fund

• The SEC has directed companies and registrars to comply with Finance Act 2020’s provisions, to honour claims for up to 12 years.

• There is an Unclaimed Funds Trust Fund established under regulations. It is meant to manage unclaimed dividends.

Identity Management Committees / Use of BVN / NIN

• Committees working to harmonize databases, improve identity management in capital market.

• Use of Bank Verification Number (BVN) to help link identity in finance sector.

How to Fix Unclaimed Dividends: Step‑by‑Step Solutions

Here are detailed, practical steps. Some require action by you; some by companies, regulators, registrars.

Solution Step 1: Update Your Own Shareholder Records

As an investor, you can do many things yourself:

1. Keep bank account, phone, email, address updated with the registrar and with your broker.

2. Register for e‑dividend mandate: fill out the electronic dividend mandate form so dividends go directly to your account.

3. Ensure your identity documents are in order: BVN, NIN, passport or national ID. Use consistent name spelling.

4. Convert any physical share certificates to electronic form, if still holding paper shares.

These small steps help ensure companies can find you when dividends are due.

Solution Step 2: Use the Self‑Service & Search Portals

• There is a portal (by SEC or NIBSS) for checking unclaimed dividends. Use it. Look up your name. If you find unclaimed money, follow the steps to claim.

• When you identify that you have unclaimed dividends, contact the registrar of that company. Provide proofs: identity, shareholding evidence, bank details.

Solution Step 3: Strengthen Identity Management Systems

Regulators and market bodies should:

• Harmonize identity databases: link BVN, NIN, shareholder IDs, registrar records.

• Enforce strong KYC (Know Your Customer) rules so when people invest, full accurate details are captured.

• Prevent multiple registrations or false names.

Solution Step 4: Improve Registrar Efficiency & Accountability

Registrars need to:

• Keep accurate and up-to-date shareholder registers.

• Send notices or reminders to shareholders (mail, SMS, email) to update bank/payment details.

• Provide clear, easy‑to‑use procedures for claiming dividends.

• Be transparent: publish lists of shareholders with unclaimed dividends, communicate deadlines and statute limitations.

Solution Step 5: Use Technology & Automation

• Fully digital platforms for e‑dividend registration, bank verification, claims.

• Online dashboards to show your shareholder record, dividend history, unclaimed funds if any.

• Automated reminders (SMS / email) for people who have not claimed dividends.

• Integration of systems: registrars, banks, SEC, NIBSS, brokers all sharing data to avoid duplicates or mismatched records.

Solution Step 6: Legal & Regulatory Reforms

• Clarify statute of limitations: how many years an unclaimed dividend remains claimable. The directive says up to 12 years, but confusion persists.

• Strengthen laws to require companies and registrars to publish unclaimed dividend lists and make claims easier.

• Enforce penalties or sanction for non‑compliance: companies / registrars that fail to pay dividends or refuse claims without valid reason.

Solution Step 7: Investor Education and Awareness Campaigns

• Teach people about their rights: dividends belong to shareholders. Even if you bought shares many years ago, you may still have unclaimed dividends.

• Use media (radio, TV, social media), investor forums, brokerage meetings, shareholder associations to spread awareness.

• Simple guides: how to fill e‑dividend mandates, how to check the portal, how to deal with missing bank details, how heirs can claim.

Solution Step 8: Establish Clear Claim Processes for Heirs and Transmission

• When a shareholder dies, make the process for heirs to claim dividends clear, affordable, fast.

• Registrars should provide transmission forms, guidance on required documents (death certificate, will, probate or succession document) in plain language.

• Possibly allow affidavits if legal documents are missing, under certain verified conditions.

Solution Step 9: Set Up Monitoring, Reporting & Trust Funds

• SEC should require companies / registrars to regularly report unclaimed dividend amounts, status, amounts claimed etc.

• Unclaimed Funds Trust Fund needs to be properly operationalized and made visible.

• Regulators should track trends and publish data so public can see progress.

Solution Step 10: Enforcement of Compliance & Sanctions

• SEC must enforce rules. Registrars or companies that ignore directives must face penalties.

• Regular inspections / audits of registrars and dividend disbursement.

• Publish non‑compliant registrars/companies so public pressure helps.

Comparisons: How Other Countries Deal With Unclaimed Dividends

It helps to compare with Kenya, South Africa, or other markets to see what can be learned.

Comparison with South Africa

• South Africa has well‑developed shareholder registries, strong company law, and efficient e‑dividend systems. Many companies pay via linked bank accounts.

• Regulators enforce compliance, and investors are more aware.

Comparison with Kenya

• NSE Kenya has registrars, dividend mandates, but still struggles with old records, contact info changes, heirs, etc.

• Kenya’s Office of the Registrar and CMA have conducted awareness campaigns.

Lessons Nigeria Can Use

• Strong identity verification (South Africa’s use of national IDs).

• Frequent communication/reminders by registrars (Kenya’s shareholder notices).

• Digital/online claim systems with real‑time tracking.

Examples & Case Studies

To help you understand, here are some example stories.

Example 1: A Small Investor Who Missed Dividends Due to Wrong Bank Details

A teacher in Lagos bought shares many years ago. She never updated her bank account after switching banks. Dividends were being declared but she didn’t get them, because the registrar had only old bank details. When she realized this via the search portal, she submitted updated details, e‑mandate, and got payments for past years.

Example 2: Heirs Claiming Dividends After Shareholder’s Death

Mr. A owned shares, passed away. His children didn’t know about shares. Years later, they found out via search portal that there were unclaimed dividends. They had to gather legal documents (death certificate, probate, etc.), submit to the registrar, and got the unclaimed amounts.

Example 3: Company Registrar Failing to Publish Unclaimed Dividends, Then Improving After Directive

Some registrar had thousands of shareholders with missing identity data, not linked bank accounts. After SEC’s directive, registrar published list, contacted shareholders, asked them to update bank mandates. Over time, large portion of unclaimed funds got paid.

Pros and Cons of Proposed Fixes

Any solution has trade‑offs. It’s good to think what works well, what side‑effects.

Pros

Cons / Challenges

Action Plan: What You Should Do Now If You Think You Have Unclaimed Dividends

If you suspect you have unclaimed dividends, here is a checklist.

1. Search via SEC / registrar / e‑dividend portal using your name, shareholder number.

2. Find out which registrar/company is handling your shares.

3. Update your identity documents, bank account info, contact info.

4. If you have paper share certificates, convert to electronic (CSCS etc.).

5. If shareholder dead, gather necessary heir & estate documents.

6. Submit claim with all required proofs: ID, shareholder number, bank mandate, etc.

7. Follow up with registrar / company regularly.

8. Use available trust funds or regulatory avenues if registrar is not responsive.

Summary Table Before Conclusion

Conclusion

Unclaimed dividends in Nigeria represent large sums of money that belong to shareholders, often small or retail investors. The problem is big, damaging trust, and hurting individual investors. But it is fixable.

If shareholders take action by updating their records, registering for e‑dividends, doing simple checks, and registrars, companies and regulators adopt stronger identity systems, better technology, clearer laws, and enforce accountability, then much of the unclaimed dividends backlog can be cleared.

For students and working people: be proactive. Check, update, claim. Don’t leave what is rightfully yours to dust.

The moment you see that you might have unclaimed dividends, begin the process. It is your right.

FAQs — Clear Answers to Common Questions

1. What is the “e‑dividend mandate” and how do I use it?
   It is a system where you give companies or registrars your bank account details so dividends are paid directly, instead of by cheque or paper. You fill a form (electronic or paper), verify your identity, and link your bank account. Then future dividends go directly to your bank.

2. How do I check if I have unclaimed dividends in Nigeria?
   Use the SEC/unclaimed dividends portal or self‑service search portals. Enter your name, shareholder number (or CSCS number), or check with the registrar of the company whose shares you own.

3. Are unclaimed dividends lost forever after some years?
   Not always. Some law says dividends unclaimed after 12 years may be “statute‑barred” (harder or impossible to claim), but recent directives require companies to honor up to 12 years. Be sure to check current laws.

4. What documents do I need to claim unclaimed dividends?
   Usually: government ID (passport, national ID), proof of share ownership (share certificate or broker codings), bank account details, sometimes BVN, sometimes proof of transmission if shareholder is deceased.

5. If a shareholder dies, how can heirs claim dividends?
   Heirs need to provide death certificate, will or probate/succession documents, authenticate identity of heir, ensure share ownership records are updated. Registrars often have “transmission” forms for this.

6. Who is responsible for paying unclaimed dividends?
   The company that declared the dividend, and its registrar, with oversight by the SEC. Registrars hold the records, ensure identity, bank details, etc., but the company must pay.

7. What role does the SEC play in solving unclaimed dividends?
   SEC issues rules and directives (e‑dividend mandate, trust fund, laws about statute‑barred), supervises registrars and companies, enforces KYC and identity standards, pushes awareness campaigns.

8. Is there a trust fund for unclaimed dividends in Nigeria?
   Yes, there is an Unclaimed Funds Trust Fund (UFTF) under recent legislation, to manage unclaimed dividends once funds are transferred. But it may not yet be fully operational or known to all.

9. Are there costs or fees for making a claim?
   Sometimes yes: legal fees (if court / probate involved), affidavit, transmission fees, document certification. But many companies/registrars try to reduce or waive fees for small or straightforward claims.

10. How long does it take to receive my dividend once I’ve submitted a claim?
    It depends. If documentation is complete and registrar acts fast, maybe a few weeks. If identity verification, bank mandate, or legal documents for heirs are needed, it can take months.

11. What if the registrar refuses my claim, what can I do?
    You can escalate to the SEC via their complaint process. Use shareholder associations. Also check if there are legal or media recourses; sometimes public pressure helps.

12. Can I avoid unclaimed dividends in future?
    Yes. Always update your bank and contact details, use e‑dividend mandate, ensure identity documents are valid, keep share certificates safe (if paper), or move to electronic record, and respond to communications from company/registrar.