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Business News

SEC’s E-dividend is drastically reducing incidents of unclaimed dividends

Stock market operators said the value of unclaimed dividends in the system has reasonably decreased to some N60 billion compared to N129 billion in 2017. 

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SEC, Whistleblowing policy
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A few years after the introduction of the E-dividend mandate by the Securities and Exchange Commission (SEC), stock market operators said the value of unclaimed dividends in the system has reasonably decreased to some N60 billion compared to N129 billion in 2017.

Although the Capital Market Committee has yet to release its latest unclaimed dividends report, a source at the SEC, said the value has indeed reduced by as much as 53.4%.

This development shows that the decision to introduce the E-dividend solution has yielded the expected result. Recall that capital market operators were highly optimistic about the E-dividend initiative by the NSE, describing it as a great initiative that will ultimately reduce the rate of unclaimed dividends to the minimum.

An extended period has been given

In a related development, the Acting Director-General of the Securities and Exchange Commission (SEC), Ms Mary Uduk, recently disclosed that there has been an extended forbearance period for the regularisation of shareholders’ multiple subscriptions. The new deadline is December 2019, she said.

Speaking during the sidelines of the recently held third Capital Markets Committee (CMC) meeting in Lagos, Uduk said the decision to extend the deadline by one year was unanimously reached by members of the committee. This was necessary because many investors were yet to realise the importance of the regularisation, she said.

According to her, regularising the multiple subscriptions held by shareholders will also facilitate the efforts being made to reduce the number of unclaimed dividends in the market.

A closer look at the E-dividend mandate

The E-dividend mandate was introduced in 2015 by the Securities and Exchange Commission (SEC) in a bid to tackle the persistent issue of unclaimed dividends which was becoming a source of concern among capital market stakeholders.

The process is intended to make it easier for investors to complete their bank mandate with company registrars. In order words, shareholders are to download the E-dividend form, fill out the information needed and submit at their bank or with the registrar. Afterwards, their dividends would be electronically transferred to their accounts.

So far, a total of 2,599,641 mandates have been approved since the commencement of the E-dividend initiative. There was, however, an 11.38% decline in the number of approved mandates in the third quarter of 2018. This contrasts with earlier records.

SSKOHN

Meanwhile, some shareholders have blamed banks for frustrating their efforts to register for the E-dividend. According to one Mr Olalekan Oregbesan,

“once you fill the e-mandate and the bank certifies you, registrars will still demand signature specimen from brokers. This is a hitch in the registration process.”

He said this is needless and makes the process unnecessarily cumbersome.

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Emmanuel is a professional writer and business journalist, with interests covering Banking & Finance, Mergers and Acquisitions, Corporate Profiles, Brand Communication, Fintech, and MSMEs.He initially joined Nairametrics as an all-round Business Analyst, but later began focusing on and covering the financial services sector. He has also held various leadership roles, including Senior Editor, QAQC Lead, and Deputy Managing Editor.Emmanuel holds an M.Sc in International Relations from the University of Ibadan, graduating with Distinction. He also graduated with a Second Class Honours (Upper Division) from the Department of Philosophy & Logic, University of Ibadan.If you have a scoop for him, you may contact him via his email- [email protected] You may also contact him through various social media platforms, preferably LinkedIn and Twitter.

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Business

Hyundai and Kia to set up an assembly plants in Ghana by 2022

The automobile giants will join Toyota-Suzuki, Nissan, Kantanka, Volkswagen, and Sinotruck who already have plants in Ghana.

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Hyundai to invest $87 billion into producing 44 new electric vehicles, Hyundai partners Kia to invest €100m in electric vehicles 
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Few weeks after Twitter announced its plans to open its first African office in Ghana, Hyundai and Kia have also concluded plans to set up an assembly plants in Ghana by 2022. The automobile giants will join Toyota-Suzuki, Nissan, Kantanka, Volkswagen, and Sinotruck who already have plants.

Ghana’s Minister for Trade and Industry, Alan Kyerematen announced this on Twitter.

READ: This is the New Tarrif Structure For Importing Tokunbo & Brand New Cars

Pleased to announce that Hyundai & KIA are set to establish assembly plants in Ghana by the end of 2022 to join Toyota-Suzuki, Nissan, Kantanka, Volkswagen & Sinotruck. The Ghana Auto Development program = 3,600 assemblies & 6,600 manufacturing parts jobs in Ghana.

The local assembly of vehicles, 3,600 direct and indirect jobs would be created in Ghana, and the addition of components and parts manufacturing will also add about 6,600 direct and indirect jobs.”

READ: Toyota snubs Nigeria as it moves to establish assembly plants in Ghana, Ivory Coast 

Why this matters

More foreign companies are shunning Nigeria in favour of Ghana. Recently, Nairametrics reported that Amazon is set to situate its African Headquarters in South Africa, a multi-billion dollar investment that is projected to create over 20,000 jobs both directly and indirectly.

Following its move to Ghana, Twitter CEO, Jack Dorsey cited a number of human rights-related reasons for the choice of Ghana over Nigeria. Added to this are rising insecurity, stifling government regulations and the gapping infrastructural deficit bedevilling Nigeria. Consequently, our nation is steadily losing opportunities to attract foreign companies that could be very instrumental in bridging its unemployment gap which is currently over 30%.

SSKOHN

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Passports: Backlog of undelievered passports to be fixed before May 31st – Minister

The government also announced the launch of a new passport application system, which would be aided by fast track services nationwide.

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The Federal Government disclosed that all backlogs of undelivered passport requests would be fixed before May 31st, and announced the launch of a new passport application system, which would be aided by fast track services nationwide.

This was disclosed by Minister of Interior, Rauf Aregbesola, in a press briefing with newsmen on Thursday.

What the Minister said

“On or before May 31st, all backlogs of undelivered requests for passports will be totally met, unless such applications have a problem,” he said.

“But before the deadline, the problematic application would be contacted, so that we know what’s wrong with the applications. Assuming there would be no problem, every successful application for a passport would be given a passport on or before May 31st,” he added.

READ: Canada invites 3,900 new PR candidates, introduces new programme to attract Nigerians

The new passport process

The Minister disclosed that the FG will launch a new passport application process which would come into effect soon.

“When you finish your application process, there would be a waiting period of six weeks to collect your passport, however, if you want an express service, there would be fast track centres nationwide, to meet requests for express passport users,” he said.

What you should know 

  • Recall Nairametrics reported last month that the Federal Government inaugurated the Nigeria Immigration Service Passport Express Centre, which is a partnership with the private sector to enable the government offer passport services to Nigerians and make passports available in a maximum of 72 hours of a successful application.
  • The FG also launched the Electronic Temporary Passport to cater for Nigerians desirous of returning home but whose national passport is not available.

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