*Investors in the Capital market under the banner of the Independent Shareholders Association of Nigeria reject the National Assembly’s proposal to transfer all unclaimed dividends to the Central Bank of Nigeria for management, asserting that ‘unclaimed dividends are not government revenue’

Isola Moses | 绿帽献妻

Citing issues of fairness, property protection, and inclusive growth, shareholders under the auspices of the Independent Shareholders Association of Nigeria (ISAN), have rejected the National Assembly’s (NASS) proposal to the country’s Securities and Exchange Commission (SEC) to transfer all investors’ unclaimed dividends in the Capital market to the Central Bank of Nigeria (CBN) for management.

Moses Igbrude, National Coordinator of ISAN, who noted this in a statement June 28, 2025, said: 鈥淲e, of the Independent Shareholders Association of Nigeria (ISAN), strongly reject the Unconstitutional Transfer of Unclaimed Dividends to the Central Bank.”

The shareholders said they believe the future of Nigeria鈥檚 investment climate 鈥渕ust be built on fairness, property protection, and inclusive growth 鈥� not arbitrary power grabs.鈥�

The statement also noted: 鈥淲e unequivocally condemn the National Assembly鈥檚 recent decision to pass legislation requiring the transfer of all unclaimed dividends from company registrars to accounts managed by the Securities and Exchange Commission (SEC), as opened by the Debt Management Office in the Central Bank of Nigeria (CBN).”

On NASS and provisions in Finance Act 2020

The Federal lawmakers recently recalled that the Finance Act 2020 mandates that dividends of all listed companies in Nigeria, which have remained unclaimed for six years or more, as well as balances in accounts dormant for six years in Deposit Money Banks, shall be transferred to an established fund known as the “Unclaimed Funds Trust Fund”.

The House of Representatives Public Accounts Committee (PAC), among others, has also directed the CBN to furnish it with the total value of unclaimed dividends and dormant account balances on or before June 30 this year, according to report.

The House Committee also directed the banking sector regulator to ensure that all unclaimed dividends and dormant account balances are transferred to the Unclaimed Funds Trust Fund account within 14 days of receipt of its letter.

ISAN, however, stated: 鈥淭his move is a gross violation of shareholders鈥� rights, a betrayal of investor trust, and a dangerous precedent that threatens the sanctity of private property and capital market integrity.”

ISAN: Why we oppose transfer of unclaimed dividends

Explaining the rationale for the Association’s move to interrogate transfer of all unclaimed dividends to the CBN, the concerned shareholders asserted that it is a 鈥渧iolation of ownership rights鈥�.

ISAN further said: 鈥淯nclaimed dividends are not government revenue. They remain the legal property of individual investors and their heirs, regardless of the time elapsed.

“The attempt to centralise and manage these funds under SEC control is a form of indirect expropriation.”

Impact on investor confidence in Nigeria鈥檚 capital market

The shareholders as well contended that the authorities’ proposal to transfer such unclaimed dividends apparently undermines investor confidence in the Nigerian Capital market.

They further noted: 鈥淭his law will shake investor confidence in Nigeria鈥檚 capital markets. Local and international investors need assurance that their returns will be protected, not confiscated under state pretexts.”

Picking holes in the relevant provision inmthe Finance Act 2020, the Association maintained the law lacks stakeholder engagement and input.

They said: 鈥淭he passage of this law without broad consultations with shareholders, registrars, and capital market stakeholders reflects a disturbing disregard for participatory governance and due process.”

According to them, there are no clear frameworks on how Nigeria’s Securities and Exchange Commission (SEC) intends to manage the funds, what returns will be offered to “rightful owners”, or how and when claims will be honoured.

The ISAN statement further noted: 鈥淭his is a recipe for bureaucratic mismanagement and corruption”, stating the law is counterproductive to financial inclusion.

They also argued: 鈥淚nstead of simplifying the claim process for unclaimed dividends, this law adds another layer of opacity and complexity, especially for rural and aging investors who already face hurdles in reclaiming dividends.鈥�

ISAN demands on unclaimed dividends

In view of the development,聽 ISAN has demanded immediate suspension of the law鈥檚 implementation.

The Association stated: 鈥淲e call on President Bola Ahmed Tinubu not to assent to this law.

“If already signed, we demand an immediate suspension pending judicial review.

“ISAN is mobilising legal resources to challenge this law in court as unconstitutional, unjust, and economically detrimental.”

The shareholders said: 鈥淲e propose that efforts should focus on reforming the claims process at the registrar level through technology, public education, and standardisation 鈥� not through centralisation and state seizure.”

ISAN added: “We call on all shareholders to join us in rejecting this injustice. “Your dividends are your right 鈥� not a government fallback fund.

“The future of Nigeria鈥檚 investment climate must be built on fairness, property protection, and inclusive growth 鈥� not arbitrary power grabs.”

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