Gwarzo, disclosed this on Wednesday while briefing the press of the Commission’s Second Quarter Capital Market Committee (CMC) meeting in Lagos.
According to the DG, the committee observed low level of financial literacy and awareness among shareholders as well as some bank’s stringent conditions as some of the key reasons for the low success recorded so far in the exercise.
The committee, Gwarzo, noted, has directed all its stakeholders, market operators, trade groups, registrars and the press to assist it in educating the investors on the importance of getting the E-dividend mandate from their banks.
To aid the exercise, the DG confirmed that the committee also urged the CBN to direct each bank to appoint E-dividend champions to drive the process. In the same vein, Registrars are to appoint their compliance officers as e-dividend champions. It was also said that registrars are to work with the bank to resolve shareholders problems within 3-4 days where there are issues, noting that the BVN has taken care of most of the likely challenges.
Speaking further, the DG urges the shareholders to take advantage of the extension of the e-divided mandate submission and do the needful. He noted that from June 2017, it would be impossible to pay dividend warrants into accounts. The new closing date is now 31 December, 2016.
The DG noted that the committee’s constant engagement with the CBN resulted in the apex bank’s approval to allow dividend warrants be paid into savings accounts.
The committee also noted the low savings culture of many Nigerians, they recommended concessions and certain incentives to encourage savings habit.