Banking
Unclaimed Dividends in First Bank, 3 Other Big Banks Swell to N92.7bn
By Aduragbemi Omiyale
Despite efforts by the Securities and Exchange Commission (SEC) to reduce the value of unclaimed dividends in the Nigerian capital market, the amount keeps swelling every year.
A report by Daily Trust said in the first nine months of 2022, the value of unclaimed dividends in four of the five tier-one banks in the country increased by N5.6 billion.
Zenith Bank, United Bank for Africa, GTCO, Access Holdings, and FBN Holdings, collectively coined as ZUGAF by Business Post, are the big banks in Nigeria, accounting for about 70 per cent of the market share of the nation’s banking industry.
In the report, it was disclosed that the unclaimed dividends in the big lenders, excluding GTBank, jumped to N92.7 billion from N87 billion.
According to the platform, the unclaimed dividends in GTCO were not captured by the company did not give details of them in the third quarter earnings released in late 2022.
The figures of unclaimed dividends in Zenith Bank remained unchanged at N28.6 billion, but the uncollected cash rewards to shareholders in UBA jumped to N12.6 billion from N11.4 billion, with Access Bank growing to N36.8 billion from N34.9 billion, and First Bank rising to N14.6 billion from N11.9 billion.
Recall that as part of its determination to reduce the fallow investors’ funds, which the federal government moved to take from for running the country, SEC introduced an electronic-dividend registration, which allows companies to pay the cash reward directly into the bank accounts of shareholders.
It also mandated listed firms to promote the use of the e-dividend platform at their annual general meetings (AGMs) and others.
According to SEC, the apex regulatory agency in the country’s capital market, the total amount of unclaimed dividends as of December 31, 2021, stood at N180 billion.
Last month, the Director-General of SEC, Mr Lamido Yuguda, said the commission would rebuild the e-Dividend Management Mandate System (e-DMMS) platform to increase the number of mandated investors on the system.
“The reason why the number may not be reducing as expected is that many investors have not mandated their accounts. Dividends are now distributed electronically, so dividends go directly into the investor’s account, and if everybody mandates their accounts, there would be few unclaimed dividends in the system.
“This process is still open and can be done with the registrars, forms can be obtained from the banks, too, and it’s a very simple process. We also have on our website a tool that assists investors in determining any unclaimed dividends that they have. And I would encourage everyone to take advantage of these tools or to speak to the complaints section of the SEC directly, and we would guide that person appropriately,” he stated.
By Modupe Gbadeyanka
About N3.6 trillion has been repaid to the Central Bank of Nigeria (CBN) by the Asset Management Corporation of Nigeria (AMCON) since its inception in 2010.
This information was revealed by the chief executive of AMCON, Mr Gbenga Alade, during a media parley to update the press on the activities of the agency.
Mr Alade said at the moment, the organisation still owes the central bank about N3 trillion for toxic assets of banks in the country.
He praised the organisation for its asset recovery drive, stressing that when compared with others across the world, Nigeria has done well.
“It is important to stress that the corporation has done tremendously well, especially when compared to other notable government-owned Asset Management Corporations around the world.
“Based on the balance at purchase, AMCON outperformed other Asset Management Corporations all over the world by achieving over 87 per cent in recoveries despite the unique challenges associated with debt recovery in Nigeria.
“The Malaysian Danaharta, which is adjudged one of the best performing Asset Management Corporation’s, only achieved 58 per cent. The Chinese Asset Management Corporation, despite its stricter laws, achieved just 33 per cent.
“Only the Korean Asset Management Corporation (KAMCO), South Korea, has achieved more recoveries than AMCON, with about 100 per cent. This was due to their brute force with which they chased the obligors.
“Despite KAMCO’s recovery records, the agency is still operational to date with slight realignments in its mandate.
“Other noted Asset Management Corporations that have transitioned into a perpetual institution of the various governments include, China Asset Management Company, Federal Deposit Insurance Corporation (FDIC) USA, and KFW Germany.
“So, gentlemen, without sounding immodest, AMCON has done well, and we will not relent until all the outstanding debts are fully realized,” Mr Alade stated.
On the financial performance of AMCON, he said last year, the firm posted a revenue of N156.25 billion and operating expenses of N29.04 billion, while for the 2025 fiscal year should be a revenue of N215.15 billion and operating expenses of N29.06 billion.
By Modupe Gbadeyanka
One of the non-interest banks in Nigeria, The Alternative Bank (AltBank), has opened a new branch in Effurun, Delta State.
The new office will serve the Edo-Delta region and provide purposeful banking and real financial empowerment for individuals, entrepreneurs, and businesses, a statement from the firm stated.
The lender disclosed that the Effurun branch is a bold move in its mission to reshape banking in Nigeria.
The launch was graced by key dignitaries, including the Ovie of Uvwie Kingdom, Emmanuel Ekemejewa Sideso Abe I; the Chairman of Uvwie Local Government, Anthony O. Ofoni, represented his vice, Andrew Agagbo; and the Special Adviser to the Governor of Delta State on Community Development, Mr Ernest Airoboyi; amongst others.
The Divisional Head for South at The Alternative Bank, Mr Chukwuemeka Agada, emphasised the institution’s commitment to Warri and its surrounding communities.
“By establishing a presence here, we are initiating a transformation in the way banking serves the people of Delta. Our purpose-driven approach ensures that customers’ financial goals are not just met but exceeded,” he stated.
“This branch represents our pledge to empower Warri’s dynamic businesses and families, providing them with the tools to grow without compromise,” Mr Agada added.
“We understand the heartbeat of this community, and we are excited to integrate our bank into the fabric of this dynamic region,” he stated further.
On his part, the representative of the Ovie, Mr Samuel Eshenake, challenged the bank to facilitate development and employment within the Effurun community.
The Regional Head for Edo/Delta at The Alternative Bank, Mr Akanni Owolabi, embraced this challenge, pledging that the bank will work sustainably to drive local commerce.
“At The Alternative Bank, we are committed to being an active partner in the development of Effurun. We see this branch as a catalyst for creating opportunities, driving employment, and supporting the growth of local businesses.
“Our mission is to empower this community, ensuring that every step forward is one of progress, prosperity, and shared success.”
By Aduragbemi Omiyale
A partnership aimed to enable seamless, real-time and secure transactions for cardholders across Africa and the rest of the world has been entered into by Payattitude and PAPSSCARD, the card scheme initiative of the Pan-African Payment & Settlement System (PAPSS).
The collaboration will allow Payattitude cards issued by banks and other deposit-taking institutions to be co-branded with PAPSSCARD, Discover, Diners and Pulse for acceptance across their networks in Nigeria, Africa and worldwide.
As an initiative of the African Export-Import Bank (Afreximbank) and a key financial infrastructure supporting the African Continental Free Trade Area (AfCFTA), the PAPSSCARD scheme will facilitate instant cross-border payments in local currencies.
“This partnership reflects our commitment to cross-enterprise alliances and enabling inclusive, efficient, and borderless payments across Africa and the world
“With Payattitude, Nigerian cardholders and financial institutions can now enjoy the benefits of a Nigerian card that can be used worldwide,” a director at Payattitude, Dr Agada Apochi, said.
The acting chief executive of PAPSSCARD, Mr John Bosco Sebabi, said the aim is “to connect African payment ecosystems, reduce the cost and inefficiencies of cross-border payments, and strengthen African sovereignty over payments infrastructure.
“Collaborating with Payattitude, a key innovator in Nigeria’s payment space, represents a significant step towards a more unified African payment landscape.”
The chief executive of PAPSS, Mr Mike Ogbalu, said, “By bringing together PAPSSCARD’s robust cross-border payment capabilities with Payattitude’s leadership in the Nigerian digital payments, we are taking tangible steps toward building a single African market where individuals and businesses can transact easily and securely, both within and beyond Africa.”
Payattitude is the first-in-kind Nigerian Payment Scheme to pioneer multibank App and USSD Code *569#.
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