Tech Boosts Dividend Claims, Sparks Fresh Confidence in Nigeria’s Capital Market Reforms

The SEC, Director-General Dr. Emomotimi John Agama

The Nigerian capital market is undergoing a quiet but profound transformation, as technology reshapes the way investors access dividends and engage with listed companies. This shift comes at a critical time when banks are racing to meet new recapitalisation targets and the Securities and Exchange Commission (SEC) is rolling out sweeping reforms to modernize market operations.

For years, the problem of unclaimed dividends cast a shadow over investor confidence. Billions of naira in unclaimed payouts sat idle due to outdated processes, paper-based dividend warrants, and communication gaps between registrars and shareholders. Investors often struggled to claim what was rightfully theirs, a challenge that eroded trust and slowed market growth.

But the tide is turning. Platforms like the e-Dividend Mandate Management System (e-DMMS) and the Central Securities Clearing System (CSCS) are helping investors automate dividend payments directly into their bank accounts. Today, shareholders no longer need to wait for physical cheques or navigate cumbersome processes. Instead, they can register their bank details online and track payments with ease.

“Technology has simplified what was once a painful process. Investors now enjoy better transparency and quicker access to their funds,” said a Lagos-based stockbroker.

These improvements form part of a broader push by the SEC to reform the capital market. Under the leadership of Director-General Dr. Emomotimi Agama, the Commission is advancing plans for full dematerialisation of share certificates, the consolidation of investor data, and increased automation of claims processes. These reforms are aimed at boosting investor confidence, increasing market participation, and reducing fraud risks.

At the same time, Nigeria’s banking sector is in the middle of a major recapitalisation wave. Following the Central Bank of Nigeria’s directive, banks are tapping into the capital market through public offerings and rights issues to raise new funds. Efficient dividend payments and seamless investor services are now key to maintaining shareholder trust as banks seek to attract fresh investments.

Market analysts say the synergy between regulatory reforms and technological adoption is essential for sustaining the capital market’s growth. “Investors are more likely to participate in recapitalisation exercises and IPOs when they are assured of timely dividends and transparent processes,” said a financial analyst.

While the advancements are promising, some challenges remain. Many retail investors, particularly in rural areas, still face digital literacy barriers. Some registrars and market operators also lag behind in adopting full automation. Cybersecurity concerns continue to be an area of focus as more financial processes go online.

However, industry leaders remain optimistic. Ade Bajomo, President of the Fintech Association of Nigeria and a former capital market executive, has long advocated for leveraging digital platforms to build investor trust and deepen market participation.

As Nigeria’s capital market braces for expanded listings, bigger transactions, and broader investor inclusion, technology will be at the core of this transformation. The digitisation of dividend claims reflects a maturing market—one preparing itself to power Nigeria’s financial future amid economic reforms and global competition.

Stay informed, stay ahead with The Ameh News