Benjamin Johnson
Mon, Sep 4, 2023 11:20 AM

How Financial Literacy Can Help Reduce Unclaimed Dividends in the Nigerian Capital Market

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How Financial Literacy Can Help Reduce Unclaimed Dividends in the Nigerian Capital Market
Nigerian Exchange Limited (NGX) believes that a combination of financial literacy and awareness can be key in reducing the growing number of unclaimed dividends in the Nigerian capital market. Despite efforts by the Securities and Exchange Commission (SEC) to address this issue, unclaimed dividends have risen to N190 billion. NGX recently held a retail investors webinar to educate shareholders on how to process outstanding dividends and reclaim their unclaimed dividends. The Exchange is dedicated to using technology to increase retail participation and make the market more accessible. SEC and other stakeholders are also committed to reducing unclaimed dividends to the barest minimum.

The Nigerian capital market is facing a major challenge with the growing number of unclaimed dividends. Despite the efforts by the Securities and Exchange Commission (SEC), unclaimed dividends have continued to rise. In light of this, Nigerian Exchange Limited (NGX) believes that a combination of financial literacy and awareness can be instrumental in addressing this issue.

The SEC recently reported that unclaimed dividends in the Nigerian capital market had risen to N190 billion, a significant increase from the N180 billion recorded in 2021. This alarming trend calls for immediate action to protect retail investors and ensure that they are aware of the backlog of unclaimed dividends that have accrued to them over the years.

NGX, in collaboration with Futureview Asset Management Limited, organized a retail investors webinar titled "How to Process Outstanding Dividend". The aim of this webinar was to provide retail investors with comprehensive procedures to process outstanding dividends and retrieve unclaimed dividends. By educating investors on the steps they need to take, NGX hopes to empower them to reclaim their rightful dividends.

The Divisional Head, Capital Markets, NGX, Jude Chiemeka, emphasized the need for financial literacy and aggressive awareness campaigns to reduce unclaimed dividends. Many retail investors are unaware of the unclaimed dividends that have accumulated from their legacy investments. Chiemeka believes that through education and awareness, investors can be better equipped to claim their dividends and take control of their financial future.

NGX is fully committed to leveraging technology to improve the access and participation of retail investors in the capital market. The Exchange has established a digital gateway that aims to simplify the investment process, reduce barriers, and encourage more retail investors to enter the market. By leveraging technology, NGX aims to democratize access to the market and reduce friction for investors.

Chiemeka also assured investors that the SEC will continue to work closely with stakeholders to address the issue of unclaimed dividends. The SEC is determined to reduce the cases of unclaimed dividends in the market to the barest minimum. This collaborative effort between regulatory bodies, exchanges, and investors is crucial in ensuring the protection and empowerment of retail investors.

In conclusion, the Nigerian capital market is facing a significant challenge with the rising number of unclaimed dividends. However, through a mix of financial literacy initiatives and increased awareness, this issue can be effectively tackled. NGX, in collaboration with key stakeholders, is taking proactive steps to educate retail investors and provide them with the necessary tools to process outstanding dividends and retrieve their unclaimed dividends. With the commitment of regulatory bodies like the SEC and the advancements in technology, the Nigerian capital market can become more inclusive and accessible, ensuring that retail investors receive their rightful dividends.

Source of content: OOO News 2023-09-04 News

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