Millions of naira in dividends remain unclaimed across Nigeria’s financial system each year. In many cases, shareholders change addresses, lose investment records, fail to update bank details, or simply forget about investments made years earlier. At the same time, dormant bank accounts can make it difficult for registrars and financial institutions to pay dividends successfully.
Recent regulatory reforms have placed renewed attention on how commercial banks, registrars, and market regulators manage dormant accounts and unclaimed funds. Understanding the relationship between dormant accounts and unclaimed dividends is important for every investor seeking to protect their financial assets.
Understanding unclaimed dividends
An unclaimed dividend arises when a declared dividend is not received or collected by the shareholder. This can happen because of incorrect bank details, inactive accounts, incomplete documentation, unresolved name mismatches, or a failure to register for electronic dividend payments.
According to the Securities and Exchange Commission (SEC), investors can search for outstanding dividends through the Commission’s dedicated unclaimed dividend portal and initiate recovery procedures through approved channels.
The SEC also provides downloadable e-dividend registration forms to help shareholders receive future payments directly into their bank accounts.
The introduction of e-dividend registration has significantly reduced the risks associated with lost dividend warrants and outdated payment methods.
How commercial banks help track unclaimed dividends
Commercial banks play a critical role in Nigeria’s dividend payment ecosystem. When investors enroll for e-dividend services, dividend payments are credited directly into their nominated bank accounts.
Banks work with registrars and financial market operators to verify account ownership, validate customer information, and process electronic payments. Where account details are outdated or accounts become inactive, payment difficulties can arise.
To address these challenges, regulators have encouraged investors to maintain updated banking records and ensure that their Bank Verification Number (BVN), account details, and shareholder records remain consistent across institutions.
ALSO READ: CBN to mop up unclaimed funds in dormant bank accounts above 10 years
What the CBN dormant accounts regulations say
The CBN dormant accounts regulations have introduced a more structured framework for managing dormant accounts, unclaimed balances, and other financial assets.
Under the revised guidelines issued by the Central Bank of Nigeria in 2024, dormant accounts and unclaimed balances that remain inactive for prolonged periods may be transferred into the Unclaimed Balances Trust Fund (UBTF) Pool Account managed by the CBN. The framework aims to protect depositor interests, establish uniform procedures, and create a transparent process for reclaiming funds.
Importantly, the regulations do not extinguish ownership rights. Beneficial owners retain the right to reclaim eligible funds through established procedures. The CBN guideline specifically states that the right of beneficial owners to reclaim unclaimed balances remains indefinite.
SEC rules on recovery of unclaimed dividends
The SEC has continued to strengthen investor protection measures aimed at reducing unclaimed dividends.
According to the Commission’s retrieval process, shareholders can search for outstanding dividends, identify their registrar, complete the relevant e-dividend mandate form, and submit the documentation through their bank or registrar for processing.
The Commission has also clarified that unclaimed dividends remain claimable under applicable regulatory provisions. Following the Finance Act 2020, qualifying unclaimed dividends may be transferred into designated trust arrangements while preserving shareholders’ rights to make future claims.
Protecting your investments
The easiest way to avoid future problems is to keep investment records current. Investors should promptly update changes in address, phone numbers, bank accounts, and shareholder information.
Enrollment in the SEC-backed e-dividend system also helps ensure that dividends are paid electronically without unnecessary delays.
As regulators continue to modernise Nigeria’s financial system, collaboration between commercial banks, registrars, the SEC, and the CBN is making it easier to identify dormant accounts, track unclaimed dividends, and reunite investors with their funds. For shareholders, staying proactive remains the best safeguard against losing track of valuable investments.
WATCH TOP VIDEOS FROM NIGERIAN TRIBUNE TV