The Securities and Exchange Commission has said that the new e-dividend portal is expected to become operational on the 30th of November 2023.
Lamido Yuguda, the Director General of Securities and Exchange Commission stated this at the 2023 Journalist Academy being organized by the Nigerian Capital Market Institute (NCMI).
Yuguda represented by Dayo Obisan, Executive Commissioner, Operations said:
- “To help solve the perennial problem of unclaimed dividends, the Capital Market Committee, under the leadership of the Commission, has embarked on the creation of a new e-dividend portal, which is expected to become operational on the 30th of November 2023.
- Once operational, this portal will simplify the process of mandating accounts for e-dividend. This will improve efficiency and ultimately lead to a significant fall in unclaimed dividends,” he said.
The SEC DG explained that in furtherance of its efforts to ensure that new dividends do not become unclaimed, the Commission is presently supporting work on an identity management system that would ensure that investors and market participants are properly identified to forestall the problems that led to the accumulation of unclaimed dividends.
He said that in line with the Commission’s developmental role, the zonal offices continue to conduct investor clinics.
These clinics according to him will provide solutions to investors dealing with issues relating to their investments in the capital market.
They also serve as good platforms for investor education and awareness. The clinics also support the financial inclusion efforts of the Commission.
New products: Yuguda noted that over the past four years, the Commission has worked hard to expand and deepen the market through the creation of new products and the expansion of existing ones.
- “Two central counterparties (CCPs) were registered and over 30 derivatives contracts were approved to kick-start derivatives trading in Nigeria.
- Over the period, the Exchange Traded Funds (ETFs) market has grown from nothing to about from about N18 billion today,” he said.
Yuguda stated that the non-interest capital markets segment is growing and that the SEC continues to witness successful sukuk issuances. The green and blue bond markets are also beginning to see some activity.
He said the Commodities market is also growing in leaps and bounds adding that the Commission has registered five commodities exchanges and supported their growth.
- “It also supported the ongoing revamp of the Nigerian Commodities Exchange (NCX) by the Central Bank of Nigeria.
- Today we have three strong multi-product exchanges driving the growth of our market. This is good, as healthy competition spurs innovation and growth. The activities of these exchanges have helped us make marked advances in product and market development.
- Over the past four years, we have had tens of issuances – equities and bonds. In 2023, we have had a total of nineteen (19) new issuances valued at ₦338.39 billion. The Commission has also reviewed and approved 11 mergers and acquisitions this year,” he said.
Fintech: Yuguda said that the Commission sees fintech and the technology sector as a growth area for the market and economy.
- “We also see it as an opportunity to direct the interest of young people to the capital. To us the greying demographic of investors in the capital market is unacceptable and we will do what it takes to make the market attractive to youths.
- We presently have a policy of supporting fintechs to be part of the capital market. To guide them, the Commission created a fintech and innovation office whose mandate is to handhold such companies as they navigate regulations toward becoming capital market operators.
- We have also set up a regulatory incubation programme to enable these companies to test out their services in a safe environment as they get on-boarded into the market,” he said.