SEC tackles unclaimed dividends with new identity management initiative

By Esther Agbo

The Securities and Exchange Commission (SEC) has introduced a new identity management initiative to tackle the persistent issue of unclaimed dividends.

This development was announced during a recent workshop on Identity Management for the capital market in Lagos.

SEC Director General, Emomotimi Agama, emphasised the initiative’s importance, according to him, the workshop gathered stakeholders and industry players to discuss ways to resolve ongoing identity management issues in the capital market.

Agama pointed out that these issues have contributed to the rising volume of unclaimed dividends, negatively affecting the market’s appeal and competitiveness.

He said, “The identity management system currently being developed will provide a lasting solution to the issue of unclaimed dividends, reduce barriers of entry to the market, and make it more attractive to the youth segment, whose participation is currently very low.

“In view of the promise to stem this undesirable trend going forward, the commission is very passionate about this initiative because its success would portend great potential for our market.”

The effort to address identity management issues began in 2018 after discussions at the third Capital Market Committee meeting.

In January 2019, the SEC formed an in-house committee to identify and tackle legacy identity management problems in the market.

The committee’s report highlighted the need to consolidate investor data and find a lasting solution to identity management challenges.

Based on its recommendations, the SEC dissolved the in-house committee in 2021 and established a market-wide committee to conduct a more comprehensive study of Nigeria’s identity crisis, particularly within the capital market.