Mr. Mounir Gwarzo, Director-General, Securities and Exchange Commission (SEC) said only a total of 2.2 million investors have registered for the e-dividend payment platform.
Gwarzo, disclosed this at the 2017 first post Capital Market Committee (CMC) media briefing on Wednesday in Lagos.
E-dividend is an electronic means of posting shareholders dividend directly into their bank accounts.
SEC had in 2016 formally inaugurated the e-Dividend Mandate Management System (e-DMMS) in conjunction with the Central Bank of Nigeria (CBN) and all Deposit Money Banks.
The aim was to address the ever increasing unclaimed dividends in the nation’s capital market.
Gwarzo said that 2.2 million investors had mandated their accounts for the e-dividend payment policy as of April 30, 2017.
The SEC boss stated that the commission would direct all listed companies to participate in the on-going enlightenment campaign on e-dividend by informing their shareholders at Annual General Meetings on the processes put in place to increase the figure.
He further said that June 30, 2017 deadline for non-issuance of dividend warrants would not be extended and urged investors to embrace the e-dividend payment platform.
He said that the commission would continue to underwrite the cost of e-dividend registration for investors till June 30.
He explained further that the e-dividend form could be obtained and properly filled at bank branches or in the office of a registrar and stock broking firms, or could be downloaded and filled by individuals.
Gwazo revealed further that the main aim of the e-dividend payment system was to curb unclaimed dividends in the market, noting that the unclaimed dividend figure was reducing due to the e-dividend adding that the commission would inaugurate the Nigerian Capital Market Development Fund (NCDMF) in the next CMC.
The fund initiated by SEC with a seed fund of N5 billion would not be managed by the commission but other operators, he said.