Nigeria’s Securities and Exchange Commission (SEC), on Tuesday in Lagos identified the accounts of deceased as a major source of the bloating unclaimed dividend in the Nigerian capital market, despite efforts to eradicate it.
In her welcome address during an enlightenment programme at the Lagos State Probate Registry in Lagos, Acting Director General of the SEC, Ms. Mary Uduk, therefore challenged beneficiaries of such deceased investors to treat the matter with all seriousness.
Uduk who was represented by Acting Executive Commissioner Operations of the SEC, Isyaku Tilde, said the enlightenment programme was to enable participants to understand the operations of the capital market.
This, she noted, is especially in such areas as transmitting shares and administration of estate, areas in which the Probate Registry is a key stakeholder, stressing that the largest chunk of unclaimed dividend and its continued growth are deceased investors. Their beneficiaries as indicated in the will or letter of administration, she continued, are yet to claim the investments and accrued dividends through the share transmission process.
“The capital market is a market for raising medium to long term capital via a number of instruments. The most popular of the instruments are shares and bonds with resultant yields of dividends and interests respectively.
“However, the quantum of unclaimed dividends in the Nigerian capital market has been on the increase as investors fail to claim the dividends from their investment in shares,” she stressed, congratulating the Lagos State Probate Registry on the recent commissioning of its e-filing probate registry.
This, the Acting DG noted, will guarantee the integrity of data, provide for online tracking of applications, simplify and shorten the application process of Letter of Administration and grants.
She, therefore, restated the commission’s readiness to collaborate with the Probate Registry staff, so that together the Nigerian capital market can become a desirable investment destination.
Also in her keynote address at the occasion, representative of the Chief Judge of Lagos State, Justice A.A. Oyebanji, commended the SEC on the enlightenment programme which she said will help staff of the probate registry in the discharge of their duties.
Oyebanji said the Registry processed legal instruments for the administration of the real and personal estate of a deceased person who was resident in and owned landed properties in Lagos.
The Probate Registry in Lagos, she assured, is now fully computerized, following which all applications must be made online.
“This e-Probate system was introduced primarily to ensure more efficient delivery of services to elements of the public. It is aimed at reducing significantly the length of time required to obtain a Grant, whether in the Ikeja or the Lagos Division” she added.
Photo Caption: Acting Executive Commissioner Operations, Securities and Exchange Commission, Isyaku Tilde, Representative of the Chief Judge of Lagos State, Mrs. Olumuyiwa Martins; partner, Coker and Adeluola, Babatunde Coker; and Head Legal Department, SEC, Mrs. Anastasia Braimoh, at Enlightenment programme for the Lagos State Probate Registry in Lagos
