SEC launches nationwide campaign to help investors recover unclaimed dividends

The Securities and Exchange Commission (SEC) has launched a nationwide investor enlightenment campaign aimed at helping Nigerians recover unclaimed dividends and other outstanding funds from capital market transactions, as the regulator intensifies efforts to strengthen investor protection and financial inclusion.

The initiative, unveiled at a town hall meeting in Lagos on Thursday, is being implemented through the National Investor Protection Fund (NIPF) and seeks to educate investors on how to verify and reclaim dormant funds, as well as the legal procedures for transferring securities following the death of an investor.

The campaign comes amid growing concerns over Nigeria’s estimated N270 billion in unclaimed dividends, which have remained dormant across the country’s capital market despite repeated efforts by regulators to encourage electronic dividend registration and improve investor awareness.

Speaking at the event, SEC Director-General Emomotimi Agama, represented by the Director of Registration and Exchanges in the Market Infrastructure Department, Hafsat Rufai, described the volume of unclaimed investor funds as unacceptable.

“The Commission considers this situation unacceptable. Funds belonging to investors should ultimately find their way back to their rightful owners,” Agama said.

According to him, the unclaimed monies administered by the NIPF include refunds from public offers, merger and acquisition considerations, corporate restructuring proceeds and other investment-related funds that have remained unclaimed over the years.

He explained that the Lagos programme marks the first phase of a nationwide awareness campaign that will subsequently cover all six geopolitical zones and the Federal Capital Territory.

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The SEC said it plans to deploy multiple communication channels, including electronic and social media platforms, its official website and other public engagement initiatives, to ensure investors are aware of their rights and the procedures for recovering their funds.

The commission also pledged to continue publishing and regularly updating the list of companies whose corporate actions have resulted in unclaimed investor funds.

Beyond unclaimed dividends, the campaign is also addressing challenges associated with inherited investments.

According to the SEC, many Nigerian families remain unaware that deceased relatives owned shares or other capital market assets.

Even where such investments are known, beneficiaries often struggle with the legal and administrative requirements needed to transfer ownership, including obtaining probate or letters of administration.

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

To address the challenge, the Lagos event featured a dedicated session on probate administration and the transmission of securities, providing practical guidance to families seeking to claim inherited investments.

The commission encouraged investors to maintain accurate investment records and urged families to preserve inherited financial assets for future generations.

Speaking on behalf of the Lagos State Attorney-General and Commissioner for Justice, Lawal Pedro (SAN), Deputy Director at the Lagos State Ministry of Justice, Olujoke Ogunojemite, commended the SEC for bringing the initiative to Lagos.

She said legal procedures should not become obstacles to legitimate beneficiaries accessing inherited investments and pledged continued collaboration between the ministry and the commission to promote investor education and strengthen access to justice.

The SEC also used the forum to caution Nigerians against Ponzi schemes and fraudulent investment platforms that continue to target unsuspecting investors with promises of unrealistic returns.

The commission warned that fraudsters are increasingly exploiting economic pressures and digital platforms to lure investors with offers of guaranteed, risk-free profits.

It stressed that investor education, due diligence and public vigilance remain the strongest safeguards against financial fraud.

Nigeria’s unclaimed dividend challenge has persisted for decades, leaving billions of naira dormant in registrars’ databases and other capital market infrastructure.