The introduction of E-Dividend champion by the Nigerian Securities and Exchange Commission of Nigeria (SEC) has attracted the registration of additional 5000 investors in September.
According to the SEC’s Head of Corporate Communication, Mr. Naif Abdussalam, up to 5000 investors registered through various bank branches and registrars across the nation.
The SEC launched the E-dividend payment system to reduce the level of unclaimed dividend in the market, ease the direct cash settlement initiative and generally boost capital market processes that will enable investors get returns with ease.
However since the introduction of this directive in December 2015, the SEC noted that only 6000 investors from a projection of one million registered as at August. This then prompted the SEC at its last Capital Market Committee meeting to agree with all the banks representatives and registrars that both party appoint e-dividend Champions to help drive the process effectively.
To further encourage shareholders to embark on the registration for e-dividend, the Director General of SEC Mr. Mounir Gwarzo restated the SEC’s commitment towards the success of the initiative by underwriting the cost of e-dividend registration till 31st December, 2016, but noted that as from June 30, 2017, all registered registrars in the capital market will stop issuing dividend warrants to shareholders.
Speaking on complaints regarding the e-dividend process, a representative of NIBSS Mr. Samuel Oluyemi, had explained that NIBSS have agreed with the banks and registrars to resolve issues pertaining to any of the challenges within three to four days of the complaints.
With the newly captured 5,000 investors, it brings to total 11,000 registered under the e-dividend system, which is still a far cry from over a million investors projected before the set deadline of June 30, 2017.