SEC launches nationwide campaign to recover N270 billion unclaimed dividends

The Securities and Exchange Commission (SEC) has launched a nationwide enlightenment campaign to help Nigerian investors recover unclaimed dividends and other funds arising from capital market transactions.

This is according to a release by the Commission citing a town hall meeting in Lagos held on Thursday, July 16.

The initiative, according to SEC, is being driven through the National Investor Protection Fund (NIPF) and is designed to sensitise the investing public on the existence of unclaimed monies, the procedures for verifying and recovering legitimate claims, and the legal steps required to transmit securities following the death of an investor.

Nigeria’s unclaimed dividends are estimated at approximately N270 billion, according to the SEC, which has continued to push electronic dividend registration and recently reaffirmed that shareholders remain entitled to claim eligible unpaid dividends of over 12 years pending the full operationalization of the Unclaimed Funds Trust Fund (UFTF).

What they are saying:

SEC Director-General Emomotimi Agama, represented at the Lagos event by Hafsat Rufai, Director of Registration and Exchanges in the Market Infrastructure Department, said the commission found it unacceptable that funds belonging to investors continued to sit unclaimed in the system.

• “The Commission considers this situation unacceptable. Funds belonging to investors should ultimately find their way back to their rightful owners,” Agama said.
• “Unclaimed monies administered by the NIPF included return monies from public offers, scheme consideration from mergers, acquisitions and corporate restructuring transactions, as well as other funds belonging to investors that had remained unclaimed.”

He noted that the campaign would address all investor funds that have remained dormant, and that the Lagos programme marks the opening leg of the campaign which will subsequently extend to all six geopolitical zones and the Federal Capital Territory.

The SEC said it would also leverage electronic and social media platforms, its official website, and other communication channels to reach a broader audience, while continuing to publish and periodically update the list of companies whose corporate actions have generated unclaimed funds.

More insights:

A significant dimension of the campaign targets a problem that cuts deeper than simple investor inertia: inheritance.

Many Nigerian families are unaware that deceased relatives held shares or other capital market investments.

Even when they are aware, they frequently lack knowledge of the legal and administrative steps required — including obtaining probate or letters of administration — to transmit those investments to rightful beneficiaries.

• “As a result, valuable investments and return on investments sometimes remain inaccessible for many years, thereby denying beneficiaries the financial benefits intended for them,” Agama said.

The Lagos programme included a dedicated expert session on probate administration and the transmission of securities, aimed at demystifying the process for families navigating inheritance-related claims.

The SEC urged investors to maintain proper investment records and encouraged families to proactively preserve inherited wealth.

Speaking on behalf of Lagos State Attorney-General Lawal Pedro, SAN, Deputy Director at the Lagos Ministry of Justice, Olujoke Ogunojemite, commended the SEC for extending the campaign to the state.

She noted that legal processes must not become barriers for legitimate beneficiaries and pledged the ministry’s continued collaboration with the commission to promote investor education and strengthen financial inclusion.

What you should know:

The SEC also used the occasion to warn the public against Ponzi schemes and fraudulent investment arrangements. The Commission has repeatedly warned that fraudsters are exploiting economic pressures and digital platforms by luring investors with promises of risk-free, unusually high returns.

• The commission stressed that investor education and vigilance remain the primary defence against financial fraud targeting retail participants
• Nigeria’s unclaimed dividend problem has persisted for decades, with billions in investor funds sitting dormant across registrar databases and capital market infrastructure.
• Under the previous legal framework, shareholders had up to 12 years to claim declared dividends, after which the funds became statute-barred and reverted to the issuing company, effectively extinguishing the investor’s legal claim.

However, the Finance Act 2020 and the Investments and Securities Act (ISA) 2025 replaced that forfeiture model with a custodial system. Under the new regime, dividends that remain unclaimed for six years are transferred to the Unclaimed Funds Trust Fund (UFTF), where the Federal Government acts solely as custodian rather than owner.

Shareholders do not lose ownership of their dividends after six years and can still recover the funds at any time upon proper verification, a reform designed to strengthen investor protection, improve transparency, and simplify the recovery of long-outstanding unclaimed dividends.