The issue of unclaimed dividend which currently stands at over N19 billion and problems associated with it became part of history yesterday with the formal launching of the electronic payment dividend payment system tagged e-dividend by the Federal Ministry of Finance in Abuja.

Facilitated by the Securities and Exchange Commission (SEC), the introduction of e-dividend, according to the commission is to solve the hydra-ended problems associated with the payment of dividend to investors by publicly owned companies.

E-dividend automatically allows dividends to be credited directly into shareholders' accounts within 24 hours of payment by concerned companies.

Speaking at the launch ceremony, the Minister of State for Finance, Mr. Remi Babalola, commended the commission for upscaling its supervisory drive for synergy and collaboration amongst financial services regulators and operators, an indication that the economy is growing steadily.
His words: "The payment of dividends is an important element in the growth of an economy. This launch is therefore expected to mark an era of drastic decline in the volume of unclaimed dividends in Nigeria, which stood at N19 billion as at the end of 2007.

"Undoubtedly, with this launch, SEC has further shown serious commitment to removing some of the building constraints in dividend payments, especially in the areas of eliminating unclaimed dividends, eliminating physical dividend warrants, eliminating delays in depositing dividend warrants into current or savings accounts, eliminating delays in receipt dividend warrants, amongst others."

In his address of welcome, the Director-General of SEC, Mallam Musa Al-Faki listed reasons for unclaimed dividends, which include issues of shareholders who died intestate and without information on next of kin; multiple applications by applicants during the investment process, deliberate actions to deny investors their benefit through various schemes by some registrars and companies who lack liquidity to pay, among others.

After considering the various problems, the commission, according to Al-Faki therefore spearheaded the introduction of electronic dividend payment system tagged e-dividend.

In his goodwill message, the Chairman Senate Committee on Capital Market, Senator Ganiyu Olanrewaju Solomon said the former warrant system has certain deficiencies, which made it ineffective, adding that the new system ensures faster payment, thereby enhancing transparency among other attributes.