Lagos: Unclaimed dividends from some banks have significantly decreased in the third quarter ending September 30, 2025, as shown by their unaudited results released on the Nigeria Exchange Group (NGX) platform.
According to News Agency of Nigeria, the decrease is attributed to the intervention by the Securities and Exchange Commission (SEC).
Zenith Bank Plc, United Bank for Africa (UBA) Plc, and First HoldCo Plc collectively reported N24 billion in unclaimed dividends during the period under review, a sharp decline from the N95 billion recorded in 2024, marking a 74.7 percent reduction. Specifically, Zenith Bank Plc recorded N3.88 billion in unclaimed dividends compared to N30.6 billion as of December 2024. UBA Plc reported N9.59 billion against N45.99 billion in 2024, while First HoldCo Plc noted N10.55 billion compared to N18.4 billion recorded in the previous year.
Reacting to the development, capital market experts and shareholders attributed this improvement to SEC’s initiatives on electronic dividends and the treatment of unclaimed sums. Prof. Uche Uwaleke, Director of the Institute of Capital Market Studies at Nasarawa State University Keffi, highlighted the SEC’s revamp of the e-Dividend Mandate Management System, which has facilitated easier linking of bank accounts for electronic payments, replacing the outdated paper warrants system.
Uwaleke emphasized that registrars and banks have strengthened their Know Your Customer (KYC) processes, including Bank Verification Number (BVN) and National Identification Number (NIN) matching, address updates, and regularization of multiple subscriptions, which have enabled more dividends to reach their rightful owners. He described this as a positive development that enhances confidence, liquidity, and governance in the market.
Mr. Okechukwu Unegbu, a former President of the Chartered Institute of Bankers of Nigeria, praised SEC and other regulatory bodies for their efforts in reducing unclaimed dividends. He noted that dividends are now being paid directly into investors’ accounts, eliminating the need for form-filling and encouraging more people to claim their dividends.
Mrs. Bisi Bakare, National Coordinator of the Pragmatic Shareholders Association of Nigeria, linked the decline in unclaimed dividends to improved investor awareness and the effective implementation of the e-dividend system and SEC guidelines. She emphasized that such developments inspire confidence among shareholders and encourage further investment.
NAN reports that SEC has issued a circular mandating that dividends unclaimed for six years or more should be transferred to the Unclaimed Funds Trust Fund (UFTF). The commission also encourages public companies and registrars to honor all requests for the payment of unclaimed dividends, ensuring continued compliance with these directives.