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E-Dividend: Over 2.8 million investors enrolled on e-DMMS in Q3’19

SEC has disclosed that over 2.820 million shareholders enrolled on e-DMMS process at the end of the third quarter of 2019. 

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Like Oando, SEC investigates, SEC’s e-dividend mandate criticised for being difficult  Lafarge Africa, Do not put all your eggs in one basket - SEC warns investors , E-Dividend: 2.820 million investors enrolled on e-DMMS in Q3’19, SEC reaffirms commitment to promote Commodities Trading, SEC threatens to suspend outdated accounts, move to address unclaimed dividends, Wonder bank clampdown: Ponzi scheme operators lose N2.35 billion assets to SEC. SEC to strictly regulate crowdfunding, issues new rules

The Securities and Exchange Commission (SEC) has disclosed that over 2.820 million shareholders enrolled on the E-Dividend Mandate Management System (e-DMMS) process at the end of the third quarter of 2019.

Acting Director-General, SEC, Mary Uduk, in an interview, explained that more investors had embraced the e-DMMS initiative as they had finally accepted it as the future.

The SEC boss also added that the commission had ordered registrars to stop the practice of requesting for confirmation of bank signature as part of the e-DMMS process.

SEC expresses its commitment to protecting investors against high charges, Mary Uduk

Details of e-DMMS: Launched in July 2015, the initiative, which was birthed by SEC in collaboration with the Central Bank of Nigeria, is to eradicate or reduce to the barest minimum the incidence of unclaimed dividend.

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To boost the e-dividend mandate and Direct Cash Settlement initiatives, the commission engaged the Nigeria Inter-Bank Settlement System (NIBSS) on behalf of the capital market community to facilitate identity validation and account validation in an effort to enhance market processes.

To create more awareness, Uduk said all capital market operators were required to display awareness campaign banners of the e-DMMS at their offices and venues of annual general meetings.

She requested that all capital market operators should work with the commission to share awareness information on their social media platforms.

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According to Punch, the commission was reviewing the request from the Association of Stockbroking Houses of Nigeria for extension of time for compliance with the transfer of complete investor data among operators such as brokers, registrars and the Central Securities Clearing System.

She said, “Upon completion, the position of the commission will be communicated to the relevant parties. We will also engage the National Pension Commission on modalities, which would permit Pension Fund Administrators to participate in securities lending and see it as a profitable initiative.” 

Acting Executive Commissioner (Operations), Isyaku Bala Tilde, urged shareholders to complete the form which “would be taken to the bank to verify that you are an account holder; you don’t need another banker’s confirmation.”

Abiola has spent about 14 years in journalism. His career has covered some top local print media like TELL Magazine, Broad Street Journal, The Point Newspaper. The Bloomberg MEI alumni has interviewed some of the most influential figures of the IMF, G-20 Summit, Pre-G20 Central Bank Governors and Finance Ministers, Critical Communication World Conference. The multiple award winner is variously trained in business and markets journalism at Lagos Business School, and Pan-Atlantic University. You may contact him via email - [email protected]

2 Comments

2 Comments

  1. Ipadeola Jonathan Okesooto

    November 27, 2019 at 12:32 am

    Please help Shareholders further by searching for adequate information on the followings:
    (1) Expression of the enrolled Shareholders as percentage of total Shareholders as at end of Q3 2019
    (2) What are the constituents of above “Complete Investor Data- Does it include Shareholder bank particulars i.e Bank, Account Number, BVN etc? Would the data facilitate easy payment of entitlements-dividend, return money etc to Shareholders? When is the likely commencement date of implementation?- the date could be reviewed according to circumstances.
    (3) Is completion of Stock Transfer Form ( STF) still mandatory before E-Dividend enrollment ? Before dematerialization, Registrars needed STF to obtain specimen signature of Transferee which would serve as standard of comparison while acting on Shareholder’s instruction for change of address, re-validation of expired warrants etc but not for payment of dividend because after settlement of share transactions, a bonafide Shareholder has right to dividend, receive notice of meeting, attend meetings etc.Before the introduction of E-dividend,some Registrars stopped posting dividend to Shareholders that have no STF because they know it would take long time to re-validate the dividend; that contributed to increase in unclaimed dividend which is part of negative development in capital market operations. As We are abandoning analogue and progressing to digital capital market operations-due to electronic connections, share Traders need not to physically contact their Stockbrokers for trading, I think completion of STF is almost becoming piratically difficult therefore, to encourage massive enrollment, the capital market Committee could consider STF removal from compulsory requirements for E-Dividend enrollment; some Registrars are enrolling Shareholders for E-Dividend without STF.

  2. Adonu Sunday

    November 27, 2019 at 7:27 pm

    SEC knows that some of the Registrars are deliberately delaying dividend payments to enable them invest the money for their own gains leaving investors to endlessly hope for the payment.

    In some cases, the Registrars endlessly request for fulfilment of conditions that are not stipulated by the SEC.

    Unfortunately SEC doesn’t act on complaints. E-mails to SEC on dividend issues don’t get replies. Investing in Nigeria is frustrating.

    SEC should in particular investigate VERITAS Registrars and African Prudentials. They frustrate investors

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Corporate Press Releases

elev8 launches new Nigeria Academy, to host event series on Nigeria’s digital future

The event will bring together experts in business, digital technology and economic development to amplify Nigeria’s digital dialogue.

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Global technology training company elev8 is delighted to announce the launch of its new academy in Lagos with a series of online events focused on digital transformation in Nigeria.

The Knowledge-based Economy – A Pathway to Nigeria’s Digitally Enabled Future is an opportunity for business leaders to participate in Nigeria’s digital dialogue with industry experts, technology trailblazers and government leaders.

C-suite executives and digital leaders across the country are invited to join elev8 for a special series of events exploring the impact of new technologies and digitalization, as well as the potential risks to economic growth, such as Covid-19.

Digital enablement is increasingly becoming a hot topic for global businesses. In the next few years, the digital economy is projected to be responsible for a quarter of global GDP.

Across the world, businesses are accelerating digital adoption to establish a competitive edge, drive growth and ensure efficiency. For Nigeria to compete on the world stage, investment in new technologies and skills is essential in supporting a transition to a knowledge-based economy.

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Digital Event: The Knowledge-based Economy – A Pathway to Nigeria’s Digitally Enabled Future

30 November – 3 December

The event will commence with the release of a cutting-edge research report on November 30. Produced in conjunction with BusinessDay Research and Intelligence Unit.

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The report examines the impact of digital transformation on Nigeria’s economic growth over the next three years.

On December 1, participants will gain valuable insight on the digital strategies and tactics deployed by leading market players in an exclusive masterclass, Digitize or Die, hosted by award-winning technology and digital innovator, Sabine VanderLinden.

The event will close on Thursday, December 3 with a live digital dialogue, featuring an expert panel of digital specialists, government figures, and business leaders, looking at the ways that digitization will impact Nigeria’s economic development.

To find out more, or register for the event, please visit: www.elev8me.com/nigeria20

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Companies

ValuAlliance distributes value fund of N10 per unit for H1, 2020

ValuAlliance Value Fund has declared the distribution to unit holders, the sum of N10.00/unit for the financial year ended June 30, 2020. 

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ValuAlliance Value Fund (“Value Fund” or the “Fund”), formerly called the SIM Capital Alliance Value Fund, has declared the distribution to unit holders, the sum of N10.00/unit for the financial year ended June 30, 2020. 

This is according to a notification by the firm, sent to the Nigerian Stock Exchange market and seen by Nairametrics.

The latest distribution indicates a decline of N1/unit when compared to its distribution in the corresponding period last year. 

(READ MORE: SEC reinstates DEAP Capital’s Board)

The key highlights of the recent notification include:

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  • Annual General Meeting Date: 21st December 2020 
  • AGM Venue: 33A Alfred Rewane (Kingsway) Road, Ikoyi, Lagos, Nigeria 
  • Proposed Distribution: ₦10/unit  
  • Qualification Date: 9th December 2020  
  • Closure of Register Date: 10th December 2020  
  • Payment Date: 23rd December 2020 

What you should know 

  •  The Value Fund is a closed-end Fund registered and regulated by the Securities and Exchange Commission (SEC), whose units are listed on the main board of the NSE. 
  • The Value Fund for the year ended June 30, 2020 achieved growth of 2.83% Year-on-Year, with a cumulative return of 125.32% since inception, which translates to a 9-year Internal Rate of Return (IRR) of 12.06%.

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Economy & Politics

Nigeria generates N416.01 billion from Company Income Tax in Q3 2020

Total company income tax generated increased by 3.48% in Q3 2020, compared to N402.03 billion recorded in Q2 2020.

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Avoid paying taxes, Nigeria generates N416.01 billion from Company Income Tax in Q3 2020

Nigeria generated the sum of N416.01 billion from Company Income Tax (CIT) in the third quarter of 2020. This was revealed in the Company Income Tax by Sectors report, recently released by the National Bureau of Statistics (NBS).

According to the report, the total CIT generated increased by 3.48% in Q3 2020, compared to N402.03 billion recorded in the previous quarter (Q2 2020). It reduced by 20.13% compared to N520.89 billion recorded in the corresponding quarter (Q3) of 2019.

READ: Nigeria’s Value Added Tax collection dips slightly in Q1 2019

READ: VAT revenue may have hit 4 year high in 2018

Highlights

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  • Company income tax generated year-to-date sums up to N1.11 trillion as against N1.26 trillion in the comparable period of 2019.
  • Professional Services including Telecoms generated the highest amount of CIT with N55.52 billion generated, closely followed by Other Manufacturing with N42.03 billion.
  • Banks & Financial Institutions generated a sum of N24.05 billion.
  • Mining generated the least, closely followed by Textile and Garment Industry and Local Government Councils with N120.93 million, N167.51 million, and N321.72 million generated respectively.

READ: FBN Holdings Plc posts Profit of N21.9 billion in Q3 2020

Out of the total amount generated in Q3 2020, N244.70 billion was generated as CIT locally, while N70.34 billion was generated as foreign CIT payment. The balance of N100.97 billion was generated as income taxes from other payments.

Automobiles and Assemblies grows CIT by 994%

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In terms of sectors with the highest increase in company income tax remittances, the Automobiles and Assemblies sector grew its CIT by 994%, from N81.6 million in Q2 2020 to N892.7 million. It was closely followed by the Gas sector, which grew its CIT by 626% to stand at N4.76 billion from N655.5 million.

READ: FG rejects calls for tax reduction, offers tax relief for donors to intervention funds

On the flip side, transport and haulage services recorded the highest decline in company income tax, as it reduced by 76% to stand at N7.35 billion from N31.1 billion. This is closely followed by Banks and financial institutions, which declined by 51% to stand at N24.1 billion.

READ: Unity Bank Plc posts gross earnings of N11.04 billion in Q3 2020

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Bottom line

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The rise in company income tax is an indication of the Nigerian government’s move to improve the generation of revenue from the fiscal side as against oil exportation. However, the halt in economic activities due to the COVID-19 pandemic contributed to the year-on-year decline in company income tax.

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