Shareholders Reject Unclaimed Dividend Law, Call It a Threat to Investor Rights
The Independent Shareholders Association of Nigeria (ISAN) has firmly opposed the ongoing implementation of the Unclaimed Funds Trust Fund, describing it as an outright violation of shareholders’ rights and a dangerous precedent for Nigeria’s capital market.
In a strong statement signed by its National Coordinator on Saturday, ISAN criticized the legal mandate that allows unclaimed dividends and dormant bank account balances (after six years) to be transferred to a government-managed trust fund under the Finance Act 2020.
Background of the Controversy
Under the controversial provision of the Finance Act, unclaimed dividends of listed companies, along with dormant balances in deposit money banks, are transferred to the Unclaimed Funds Trust Fund. The fund is managed by a Governing Council comprising the Minister of Finance, the Debt Management Office, and other government stakeholders.
However, ISAN has pushed back, stating:
“Unclaimed dividends are not government revenue. They are the legal property of individual investors and their heirs, regardless of how much time has passed.”
They further warned that placing these funds under the Securities and Exchange Commission (SEC) is akin to indirect expropriation and will damage investor confidence, especially among foreign investors.
⚖️ Shareholders Demand Reform, Not Seizure
ISAN also condemned the lack of proper consultation with key market stakeholders — including registrars, investors, and capital market operators — before the law was passed. They argue that the current structure lacks:
• A clear framework for managing the funds
• A transparent process for rightful owners to reclaim their dividends
• Adequate safeguards against bureaucratic bottlenecks and potential corruption
Instead, they called for reforming the dividend claims process at the registrar level using technology, education, and improved standardisation. ✅
“Dividends are a right, not a fallback fund for the government,” ISAN emphasized.
CBN and Lawmakers Press Ahead
This issue resurfaced last week when the Central Bank of Nigeria (CBN), represented by Deputy Governor Bala Bello, and Finance Minister Wale Edun appeared before the House of Representatives Joint Committee on Public Accounts and Public Assets.
The committee gave the CBN a 14-day ultimatum to remit ₦3.64 trillion into the government’s account — including all unclaimed dividends and dormant balances. Lawmakers also demanded a full disclosure of the total value of such funds by June 30, 2025.
“The CBN shall ensure that all unclaimed dividends and dormant balances are transferred to the Unclaimed Funds Trust Fund account within 14 days,” the committee insisted.
What This Means for You:
• If you or your family members have old, unclaimed dividends, now is the time to initiate the recovery process via your registrar.
• This battle may shape future investor-government relations — shareholders are fighting for the sanctity of private property.
• Stay informed and verify that your investment records are updated to avoid loss of entitlements.
The Independent Shareholders Association of Nigeria (ISAN) has firmly opposed the ongoing implementation of the Unclaimed Funds Trust Fund, describing it as an outright violation of shareholders’ rights and a dangerous precedent for Nigeria’s capital market.
In a strong statement signed by its National Coordinator on Saturday, ISAN criticized the legal mandate that allows unclaimed dividends and dormant bank account balances (after six years) to be transferred to a government-managed trust fund under the Finance Act 2020.
Background of the Controversy
Under the controversial provision of the Finance Act, unclaimed dividends of listed companies, along with dormant balances in deposit money banks, are transferred to the Unclaimed Funds Trust Fund. The fund is managed by a Governing Council comprising the Minister of Finance, the Debt Management Office, and other government stakeholders.
However, ISAN has pushed back, stating:
“Unclaimed dividends are not government revenue. They are the legal property of individual investors and their heirs, regardless of how much time has passed.”
They further warned that placing these funds under the Securities and Exchange Commission (SEC) is akin to indirect expropriation and will damage investor confidence, especially among foreign investors.
⚖️ Shareholders Demand Reform, Not Seizure
ISAN also condemned the lack of proper consultation with key market stakeholders — including registrars, investors, and capital market operators — before the law was passed. They argue that the current structure lacks:
• A clear framework for managing the funds
• A transparent process for rightful owners to reclaim their dividends
• Adequate safeguards against bureaucratic bottlenecks and potential corruption
Instead, they called for reforming the dividend claims process at the registrar level using technology, education, and improved standardisation. ✅
“Dividends are a right, not a fallback fund for the government,” ISAN emphasized.
CBN and Lawmakers Press Ahead
This issue resurfaced last week when the Central Bank of Nigeria (CBN), represented by Deputy Governor Bala Bello, and Finance Minister Wale Edun appeared before the House of Representatives Joint Committee on Public Accounts and Public Assets.
The committee gave the CBN a 14-day ultimatum to remit ₦3.64 trillion into the government’s account — including all unclaimed dividends and dormant balances. Lawmakers also demanded a full disclosure of the total value of such funds by June 30, 2025.
“The CBN shall ensure that all unclaimed dividends and dormant balances are transferred to the Unclaimed Funds Trust Fund account within 14 days,” the committee insisted.
What This Means for You:
• If you or your family members have old, unclaimed dividends, now is the time to initiate the recovery process via your registrar.
• This battle may shape future investor-government relations — shareholders are fighting for the sanctity of private property.
• Stay informed and verify that your investment records are updated to avoid loss of entitlements.