Nigerian Exchange Limited (NGX) has highlighted the importance of financial literacy and awareness in addressing the issue of unclaimed dividends in the capital market. With unclaimed dividends in the Nigerian capital market reaching N190 billion, efforts to tackle this issue have been challenging. However, through initiatives like webinars and increased access to the market, the NGX aims to educate and empower retail investors to process outstanding dividends and retrieve their unclaimed funds.
Unclaimed dividends in the Nigerian capital market have become a significant concern, with the total amount reaching N190 billion, according to the Securities and Exchange Commission (SEC). Despite efforts to address this issue, including the SEC's interventions, the problem remains unresolved.
In a recent webinar organized by the Nigerian Exchange Limited (NGX) in partnership with Futureview Asset Management Limited, the Divisional Head of Capital Markets, Jude Chiemeka, emphasized the role of financial literacy and awareness in reducing unclaimed dividends.
Chiemeka highlighted the fact that many retail investors are unaware of the backlog of unclaimed dividends that have accumulated over the years, particularly for investors with legacy investments. The webinar aimed to provide guidance and procedures for investors, especially retail investors, on how to process outstanding dividends and retrieve their unclaimed funds.
The Divisional Head of Capital Markets emphasized the importance of a mix of financial literacy and aggressive awareness campaigns to tackle the issue of unclaimed dividends effectively. By empowering investors with the necessary knowledge and information, they can take proactive steps to claim their dividends and avoid future complications.
Furthermore, the Nigerian Exchange Limited is committed to leveraging technology to optimize intermediaries and enhance retail investors' access to the market. With the establishment of a digital gateway, the NGX aims to democratize access, reduce barriers, and encourage greater retail participation in the capital market.
Financial literacy plays a crucial role in empowering investors to make informed decisions. It equips them with the understanding of how the capital market operates, the importance of dividends, and the necessary steps to claim their entitlements. Lack of financial literacy and awareness can lead to a significant number of unclaimed dividends, which ultimately diminishes the effectiveness of the capital market.
By educating retail investors about the process of claiming outstanding dividends and retrieving unclaimed funds, the Nigerian Exchange Limited aims to bridge the knowledge gap and empower investors to take control of their investments.
Through webinars, workshops, and other educational initiatives, investors can gain a better understanding of the capital market's intricacies and the importance of dividend management. This knowledge will enable them to stay informed and engaged with their investments, reducing the likelihood of unclaimed dividends.
In conclusion, financial literacy and awareness are crucial in addressing the rising issue of unclaimed dividends in the Nigerian capital market. By empowering retail investors with the necessary knowledge and providing accessible platforms to process outstanding dividends, the NGX aims to reduce the N190 billion backlog of unclaimed dividends. Through these efforts, investors can navigate the capital market more confidently and ensure the efficient management of their investments.
Source of content: OOO News 2023-09-04 News
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