The Securities and Exchange Commission (SEC), Nigeria's capital market regulator, formerly approved the modalities for the implementation of the e-dividend payment system that will ensure dividend payments reach investors' accounts within 24 hours.
Sylvester Akele, director: research and planning at the SEC, recently said that the new system will encourage companies to speedily meet dividend payment obligations.
It is estimated that unclaimed dividends in Nigeria currently stand at N19-billion.
The e-dividend payment system will decrease the incidence of unclaimed dividends and will allow shareholders to immediately access the proceeds of their investments.
Joe Mekiliuwa, computer department head of Central Security Clearing System (CSCS), said the e-dividend system will solve the problems created when investors move to a different address without informing their registrars, leaving them without access to their entitlements.