The regulators should keep monitoring the registrars because some of them are understaffed and lack some facilities that would facilitate the processing of this e-dividend. Some of our shareholders still get dividend warrants from Registrars after they have sent a mandate to the e-dividend platform. The e-dividend, no doubt is a good initiative that would help to eradicate or reduce to the barest minimum the incidence of unclaimed dividend.
Unclaimed dividend as you may know is an undesirable element of the Nigerian capital market which denies shareholders the gains of participating in the capital market. It denies the economy access to the huge amount of money which should have accrued to shareholders and would have gone into circulation to oil the wheel of the economy. Mr Owolabi Peter, Chairman,Integrated Supreme Shareholders Association of Nigeria stated that “some of our shareholders have complained of receiving dividend warrants even after they have migrated to the e-dividend platform. Although, since I have registered all my shares I no longer get dividend warrants. Once dividend is declared by any of the companies that I have a stake in, it is paid to my account. But to some of our shareholders that still get dividend warrants they need to still visit their registrars and make formal complaints”. In addition, he also stated that the regulators should carry out oversight supervision to ensure that all registrars key into this initiative.
Mr Oderinde Taiwo who is The National Co-ordinator of Proactive Shareholders Association of Nigeria (PSAN) said; “It still surprise me that registrars still send dividend warrants to shareholders when they have already registered for the e-dividend”.
This shows that some of the registrars are not even serious with the e-dividend initiative. The regulators in our market have a big role to play here by ensuring that defaulted entity is sanctioned. As a shareholder group, we educate our people of the need to participate in the ongoing e-dividend registration. e-dividend if properly executed will ensure that we no longer have further unclaimed dividend.