Imagine reaching into an old jacket and finding a forgotten ₦1,000 note. That’s the feeling of discovering unclaimed dividends, but on a much larger scale. Across Nigeria, billions of naira sit idle as unclaimed dividends, rightfully belonging to investors who may have forgotten about them or encountered obstacles in claiming them. Recent data indicates that investors in the Nigerian stock market have not claimed ₦215 billion worth of dividends.
These funds, often forgotten due to outdated contact details, incomplete bank mandates, or other issues, are rightfully yours. It’s time to change that narrative and ensure you receive what you are entitled to.
What Are Unclaimed Dividends?
Dividends are a share of a company’s profits that the company periodically pays to its shareholders. They are typically announced (“declared”) first and then paid weeks later. When these dividends aren’t collected (i.e., claimed) by shareholders who are eligible for them, they become unpaid dividends. In many cases, they remain unclaimed for several years.
Why Dividends Go Unclaimed
Dividends are unclaimed for various reasons:
- Investors forgetting their holdings in the paying companies.
- Shareholders deciding that the dividend collection process is too tedious.
- Owners getting married and changing their maiden name in which their investments were made.
- The death of the stockholder.
Note that unclaimed dividends do not generate interest and will retain the nominal value in which they were originally supposed to be paid out.
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Step-by-Step Guide to Reclaiming Your Dividends
Contrary to widespread assumptions, securing outstanding payouts from the companies you’re invested in doesn’t have to be a hassle. Here’s how to get your unclaimed dividend the right way:
- Confirm Your Eligibility: The first thing to do is to confirm that you do indeed have unclaimed dividends.
- Search for Unclaimed Dividends: Use the SEC portal to check for your name and relevant details about your holdings with the companies that offered the dividends.
- Download and Fill Out Your Registrar’s e-Mandate Form: You can obtain this on the SEC portal.
- Submit the Form: Complete the form and send it to your local Bank or your Registrar’s office with a copy of your passport photo, or submit it through your Stockbroker.
- Verification and Transfer: Whichever of these you submit the document to will review it until they are satisfied that your claim should be honored. Upon verification, your registrar will transfer your previously unclaimed dividend to the bank account you choose. Be sure to follow up with them if they don’t respond quickly or satisfactorily.
When an individual purchases shares in a company, they are entitled to a portion of the company’s profits, known as dividends. These dividends can be distributed as dividend warrants, electronic payments for each unit of stock held, bonus shares, or other forms of compensation.
However, many shareholders fail to claim their dividends due to reasons such as lack of information, the perceived complexity of the process, negligence, forgotten investments, death, or changes in marital status (particularly for female shareholders who bought shares under their maiden name).
How to Recover Your Unclaimed Dividends in Nigeria (Step-by-Step Guide)
The Role of the Unclaimed Funds Trust Fund
The 2021 Finance Act requires that dividends unclaimed for 6 to 12 years be transferred to the Unclaimed Funds Trust Fund, which the Federal Government can borrow from to support its budget.
Seeking Professional Assistance
Consult a Capital Market Professional or Bank: Your stockbroker can assist with retrieving your CSCS account number, sending your signature to the registrar, tracking the process, and offering investment advice.
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Africa Prudential and Invearn: Simplifying Dividend Recovery
At Africa Prudential, the mission is to help you unlock and grow your wealth through smart, seamless technology. Unclaimed dividends shouldn’t be a mystery, and they shouldn’t be a loss.
Invearn, Africa Prudential’s self-service digital platform, helps you:
- Search for your name.
- Instantly check for unclaimed dividends.
- Begin the process to recover your funds.
- Stay updated with alerts and tips.
Visit www.invearn.com to search now; your forgotten money could be just a few clicks away.
How to Register for E-Dividends with Africa Prudential
Here’s how to register for e-dividends and never miss a payment again:
- Go to www.africaprudential.com
- Click on claim dividend icon on the home page to fill the online form
- Complete the Form: Provide accurate details: your bank name, select bank, bank account number, and last name.
- Submit Your Form: Click submit after all information has been filled.
- Enjoy Seamless Dividend Payments: Once submitted, all future dividends will be credited directly to your bank account.
MTN and Computershare: A Partnership for Dividend Distribution
MTN Group Limited (MTN) has appointed Computershare Investor Services (Pty) Limited (Computershare) as the authorized service provider to manage the process of locating shareholders with unclaimed dividends. Since the commencement of this initiative, a substantial number of shareholders have updated their records, leading to the successful distribution of over R17 million in dividends.
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In collaboration with Computershare, MTN remains dedicated to reaching its shareholders and ensuring they receive their dividends. To expedite the process, please have your identification documents, proof of bank account, and other supporting documents ready if your shareholder profile requires updating. MTN and Computershare are dedicated to reuniting shareholders with their unclaimed dividends.
Summary of Key Resources
| Resource | Description | Link |
|---|---|---|
| SEC Portal | Check for unclaimed dividends and download the e-Mandate form. | [SEC Portal Link] (Replace with actual link) |
| Africa Prudential (Invearn) | Search for unclaimed dividends and begin the recovery process. | www.invearn.com |
| Africa Prudential Website | Register for e-dividends. | www.africaprudential.com |
In our final assessment, we commend the Securities and Exchange Commission for its innovative efforts to streamline the process of claiming unclaimed dividends. However, there is a notable challenge, particularly for married women, as changes in their names and the integration of the Bank Verification Number may unintentionally complicate the process.
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