SEC Moves to Recover Billions in Unclaimed Dividends, Orders Transfer to DMO

In a decisive move to unlock idle investor funds and support national development, the Securities and Exchange Commission (SEC) has issued a fresh directive mandating all Registrars in the Nigerian capital market to transfer qualifying unclaimed dividends to designated accounts maintained by the Debt Management Office (DMO).

This development follows the provisions of the Finance Act 2020, which established the Unclaimed Funds Trust Fund (UFTF) — a legal framework designed to manage dividends and dormant account balances that have been left unclaimed for extended periods.

Under the directive, Registrars are now required to transfer:

• All unclaimed dividends outstanding for six to twelve years as of December 31, 2020, and
• All dividends unclaimed for six years and above, between January 1, 2021, and June 10, 2025.

Some Registrars have already begun implementing the order, signalling full compliance with regulatory requirements.

The move is expected to recover billions of naira currently sitting unutilised in the system. The SEC clarified that this is not a forfeiture of funds but a temporary transfer. Shareholders can still claim their dividends by applying through the appropriate channels managed by the DMO.

Capital market expert, Ojochide Moses described the directive as a bold but necessary intervention.

“We’re talking about billions of naira that have been lying fallow. This move by SEC will not only clean up corporate books but also redirect funds into productive use for government financing.”

Another industry analyst, Celestine Ukpong, added:

“It’s a wake-up call for shareholders. While their dividends remain safe, this policy pushes for a more accountable, efficient capital market structure.”

This directive is also part of broader efforts to improve investor confidence, promote financial system stability, and support infrastructure development using long-term idle funds.

As the transfers commence, the SEC has assured the investing public that shareholders’ rights remain protected and that dividends can still be accessed through a formal claims process.

With the regulatory hammer now down, industry stakeholders are watching closely to see the financial impact and how effectively the DMO will deploy the reclaimed funds.