The Securities and Exchange Commission (SEC) has announced the forthcoming launch of a new e-dividend portal, slated to go live on November 30, 2023. Lamido Yuguda, the Director General of SEC, shared this development during the 2023 Journalist Academy organized by the Nigerian Capital Market Institute (NCMI). Represented by Dayo Obisan, Executive Commissioner, Operations, Yuguda highlighted the purpose of the new portal, aiming to address the persistent issue of unclaimed dividends.
In an effort to streamline the process of mandating accounts for e-dividends, the Capital Market Committee, led by the Commission, initiated the creation of this portal. The anticipated outcome is an enhancement in efficiency, ultimately leading to a substantial reduction in unclaimed dividends, as explained by Yuguda. He emphasized that once operational, the portal will simplify the e-dividend mandate process.
Addressing the concern of unclaimed dividends, Yuguda revealed that the Commission is actively supporting the development of an identity management system. This system aims to ensure proper identification of investors and market participants, preventing the recurrence of issues that contributed to the accumulation of unclaimed dividends.
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Yuguda also outlined the Commission’s commitment to market development through various initiatives. These include the establishment of investor clinics at zonal offices, designed to offer solutions to investors dealing with capital market-related issues. Additionally, these clinics serve as platforms for investor education, awareness, and support the financial inclusion efforts of the Commission.
Highlighting market expansion, Yuguda noted the Commission’s efforts in introducing new products and expanding existing ones over the past four years. Notable achievements include the registration of two central counterparties (CCPs) and approval of over 30 derivatives contracts to kick-start derivatives trading in Nigeria. The Exchange Traded Funds (ETFs) market has also experienced significant growth.
The SEC DG reported positive developments in the non-interest capital markets segment, with successful sukuk issuances and emerging activity in the green and blue bond markets. The Commodities market has seen substantial growth, with the registration of five commodities exchanges and support for the revamp of the Nigerian Commodities Exchange (NCX) by the Central Bank of Nigeria.
Yuguda emphasized the Commission’s encouragement of fintech and the technology sector, viewing them as growth areas for the market and economy. Acknowledging the importance of attracting younger investors, the Commission has implemented a policy of supporting fintechs to participate in the capital market. To facilitate this, a fintech and innovation office has been established, tasked with guiding these companies through regulatory processes. The Commission has also introduced a regulatory incubation program, allowing fintech companies to test their services in a secure environment as they enter the market.
