SEC begins nationwide campaign to help investors recover unclaimed dividends

The Securities and Exchange Commission (SEC) has commenced a nationwide public enlightenment campaign aimed at helping Nigerians recover unclaimed dividends and other funds arising from capital market transactions, as part of efforts to strengthen investor protection and improve confidence in the country’s capital market.

The campaign, which began with a town hall meeting in Lagos on Thursday, is designed to educate investors on the existence of unclaimed monies, the role of the National Investor Protection Fund (NIPF), and the procedures for verifying and recovering legitimate claims.

Speaking at the event, the Director-General of the SEC, Dr. Emomotimi Agama, represented by the Director, Registration and Exchanges, Market Infrastructure Department, Hafsat Rufai, said the initiative was approved by the Commission’s Board to ensure that funds belonging to investors are returned to their rightful owners.

According to him, unclaimed monies administered by the NIPF include return monies from public offers, scheme consideration arising from mergers, acquisitions and corporate restructuring transactions, as well as other funds belonging to investors that have remained unclaimed.

He said many investors and their families were either unaware that such funds existed or lacked knowledge of the procedures required to recover them.

“The Commission considers this situation unacceptable. Funds belonging to investors should ultimately find their way back to their rightful owners,” he said.

Agama said the Lagos programme marked the beginning of a nationwide outreach that would subsequently extend to the six geopolitical zones and the Federal Capital Territory.

He added that the Commission would complement the physical engagements with electronic and social media campaigns, its official website and other communication platforms to reach more Nigerians. He also said the SEC would continue to publish and periodically update the list of companies whose corporate actions had resulted in unclaimed monies to enable affected investors identify potential claims.

Agama said the campaign would also address issues relating to the transmission of securities following the death of an investor, noting that many families were unaware that deceased relatives owned shares or other capital market investments.

He explained that even where beneficiaries were aware of such investments, many lacked knowledge of the legal and administrative procedures required to obtain probate or letters of administration and transmit the investments to the rightful beneficiaries.

“As a result, valuable investments and return on investments sometimes remain inaccessible for many years, thereby denying beneficiaries the financial benefits intended for them,” he said.

To address the challenge, Agama said the Lagos programme featured an expert session on probate administration and the transmission of securities to provide practical guidance to investors and their families on the required legal processes.

He urged investors to maintain proper records of their investments and encouraged families to take deliberate steps to preserve inherited wealth by ensuring investment documents were properly documented and accessible.

Beyond the issue of unclaimed funds, the SEC used the forum to caution Nigerians against Ponzi schemes and other fraudulent investment arrangements.

Agama said fraudsters continued to exploit prevailing economic conditions and digital platforms to lure unsuspecting members of the public with promises of guaranteed and unusually high returns.

He advised prospective investors to exercise caution and avoid investment opportunities that promise risk-free returns, stressing that investor education and vigilance remain critical in protecting the public from financial fraud.

Also speaking, the Deputy Director in the Lagos State Ministry of Justice, Olujoke Ogunojemite, who represented the Lagos State Attorney-General and Commissioner for Justice, Lawal Pedro, SAN, commended the SEC for extending the awareness campaign to Lagos and for recognising the importance of legal institutions in resolving issues relating to unclaimed dividends and other assets.

She said the challenge had practical implications for many beneficiaries who were unable to access investments left behind by deceased relatives due to legal and procedural hurdles.

According to her, the ministry remains committed to ensuring that legal processes do not become barriers to beneficiaries seeking to recover legitimate assets.

“We will continue to provide partners for citizens to resolve such issues,” she said.

Ogunojemite described the SEC’s outreach as a commendable initiative that would assist in restoring assets to their rightful beneficiaries, adding that the Lagos State Government was prepared to continue collaborating with the Commission and other stakeholders to promote investor education, strengthen financial inclusion and improve access to legitimate investment assets.

The nationwide campaign forms part of the SEC’s broader investor protection efforts under the National Investor Protection Fund, which seeks to improve public awareness, facilitate the recovery of unclaimed capital market funds and promote confidence in Nigeria’s capital market by ensuring that investors and their beneficiaries are able to access assets legally due to them.