Economy
Shareholders’ Groups Reject FG’s Plan to Spend Unclaimed Dividends
By Adedapo Adesanya
Two of the leading vocal shareholders’ groups, the Independent Shareholders Association of Nigeria (ISAN) and the New Dimension Shareholders Association, have condemned the federal government’s intention to borrow from the unclaimed dividends of investors in the stock market and dormant account balances of residents of the country, saying the decision is a disincentive to investment.
The Publicity Secretary of ISAN, Mr Moses Igbrude, noted that most assets managed by the government in the past were misappropriated and marred by corruption.
This development joins other criticisms that followed plans by the federal government in the 2020 Finance Act (Amendment) Bill to borrow from unclaimed dividends and dormant account balances under the Unclaimed Dividend Trust Fund worth nearly N900 billion.
Mr Igbrude noted, “The government that is supposed to protect its citizens wants to rob shareholders through this Unclaimed Dividend Trust Fund.
“The same government that wants investors to invest and grow the economy is the same government that wants to take away the proceeds of the investment just because shareholders did not claim it on time.
“Government has forgotten that it had taken over 30 per cent tax from the companies that generated the dividends from profit before tax, and another 10 per cent from the individual investors through withholding tax on any dividends declared by companies. What moral right does the government have to take the money?”
“Section 39 (f) of the Finance Bill stated, ‘All unclaimed dividend that has remained unclaimed for a period of not less than 12 years shall lapse into government revenue and shall be transferred from the Unclaimed Dividends Trust Fund to the Federal Account as Federal Revenue.
“This is unacceptable and an inhumanity to man. This would definitely erode investors’ confidence and militate against investment in Nigeria. We want those behind this proposal to have a rethink, otherwise, they will be in for a long legal battle with the shareholders.
“We are appealing to the National Assembly to reject and expunge in its entirety that section of the Bill, because from all intent and purpose the Unclaimed Dividend Trust Fund is designed to rob innocent Nigerians of their hard-earned money,” he added.
Adding his input, the President, New Dimension Shareholders Association, Mr Patrick Ajudua, noted that borrowing or setting up a trust fund for unclaimed dividends would create another opportunity for wasteful spending, insisting that the unclaimed dividends should go back to the companies.
Mr Ajudua explained further that the government has remained insensitive to the plight of listed firms and the capital market that generated the dividends through the years.
He noted that it was not only unacceptable to do this but this will serve as a disincentive to investment. He appealed to the National Assembly to reject and expunge the section of the bill, adding that borrowing it is another means of robbing shareholders of their hard-earned money.
“For us shareholders, it is unfortunate that the government has decided to annex money that does not belong to them to cover their hidden intentions.”
“Initially it was setting up a trust fund, and now they want to borrow; do you borrow money not given to you freely?
“Rather than encourage listed firms by to ploughing it back into these companies to boost their operations in this era of a pandemic, they decided to annex it forcefully, thereby discouraging retail investors from investing in the market,” he said.
By Bon Peter
The Area 11 Command of the Nigeria Customs Service (NCS) in Onne, Rivers State surpassed its 2024 annual revenue target by N16 billion.
This information was revealed to newsmen by the Customs Area Controller of the Command, Mr Mohammed Babandede, at a news conference last week.
He also disclosed that the command recently intercepted 12 containers of illicit drugs worth over N20.30 billion concealed in various items.
According to him, the content of the seized container included 1,721,100 bottles of 100ml cough syrup codeine, 510,000 tablets of 50mg Really Extra Diclofenac, 7,100,000 tablets of 225mg Royal apple Tramadol and Tramaking, 3,461 pieces of sanitary ware fittings used for concealment, 840 pieces of Chilly cutter used for concealment, and 153 cartons of TVS rubber.
“Our vigilant officers and men have successfully intercepted and seized an additional 12 containers (40 feet) of illicit medicine.
“This is a testament to our unwavering commitment to safeguarding public health, ensuring security of our nation and compliance with Nigeria’s import regulations. This also justifies our commitment to trade facilitation, transparency, effective and efficient service,” he said.
He said last year, the command received the support of different stakeholders, thanking them for working with the agency to achieve success.
“We appreciate the continued support and collaboration of all stakeholders, including the media, in amplifying our message and efforts to combat smuggling,” he said.
Mr Babandede stated that, “It is worth noting that the morale and dedication of our officers have been significantly bolstered by the Comptroller-General of Customs’ award, recognizing Area 2 Command as the Best Command in Anti-Smuggling Operations.
“This honour has further strengthened our resolve, and I assure you that we will not relent in performing our duties to protect the lives and well-being of Nigerians.”
The customs chief said earlier last year, the command was given a revenue target of N618 billion but as of December 31, 2024, it generated N634 billion, higher than the N321 billion recorded in 2023, promising to do more in 2025.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited appreciated by 0.39 per cent on Friday as the demand for local equities continued to increase.
During the final trading session of the week, the insurance maintained its upward trend with a growth of 7.81 per cent as the banking index appreciated by 1.08 per cent, the consumer goods sector rose by 0.52 per cent, and the industrial goods counter expanded by 0.33 per cent, while the energy space went down by 0.49 per cent.
At the close of business, the All-Share Index (ASI) jumped by 406.19 points to 103,586.33 points from 103,180.14 points, and the market capitalisation increased by N248 billion to N63.166 trillion from N62.918 trillion.
The bourse recorded 67 appreciating shares and 11 depreciating shares, implying a positive market breadth index and strong investor sentiment.
Chams, Omatek, NCR Nigeria, Learn Africa, and Regency Alliance topped the gainers’ table after they gained 10.00 per cent each to finish at N2.31, 88 Kobo, N6.05, N4.95, and 88 Kobo, respectively.
On the flip side, TotalEnergies lost 9.74 per cent to trade at N630.00, CWG depreciated by 6.04 per cent to close at N7.00, Thomas Wyatt went down by 5.26 per cent to N1.80, ABC Transport crumbled by 4.07 per cent to N1.18, and UAC Nigeria shed 3.19 per cent to N31.90.
Yesterday, investors traded 709.3 million stocks valued at N8.2 billion in 13,593 deals compared with the 829.8 million stocks worth N5.7 billion transacted in 11,752 deals on Thursday, representing a slowdown in the trading volume by 14.52 per cent and a rise in the trading value and number of deals by 43.86 per cent and 15.67 per cent, respectively.
At the close of business, Chams topped the activity log with 58.1 million equities sold for N133.8 million, Veritas Kapital traded 55.1 million shares valued at N89.2 million, Abbey Mortgage Bank exchanged 50.1 million stocks for N165.5 million, AIICO Insurance transacted 39.7 million equities worth N68.3 million, and NPF Microfinance Bank sold 34.3 million stocks valued at N64.0 million.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its positive start to the year with a 0.08 per cent rise on Friday, January 3.
The market saw a gain of N840 million, with the value of the alternative bourse growing to N1.046 trillion from the N1.045 trillion it closed a day earlier as the NASD Unlisted Security Index (NSI) made an addition of 2.43 points to wrap the session at 3,052.34 points compared with 3,049.91 points recorded at the previous session.
The appreciation posted yesterday at the NASD OTC exchange was caused by two price gainers led by Industrial and General Insurance (IGI) Plc which jumped by 2 Kobo to end at 20 Kobo per share compared with the preceding session’s 18 Kobo per share and UBN Property Plc, which improved its value by 16 Kobo to close at N1.98 per unit, in contrast to Thursday’s closing price f N1.82 per unit.
The market posted a price loser, which was FrieslandCampina Wamco Nigeria Plc as it dropped 18 Kobo to finish at N39.76 share versus the previous day’s N39.94 per share.
There was an 856.6 per cent surge in the volume of securities traded in the session to 11.3 million units from the 1.2 million units traded in the preceding session.
Equally, there was a jump in the value of shares traded yesterday by 1,078.4 per cent to N56.8 million from the N4.8 million made previously, and the number of deals increased by 22.7 per cent to 27 deals from 22 deals.
FrieslandCampina Wamco Nigeria Plc was the most active stock by value (year-to-date) with 1.4 units worth N55.8 million, IGI Plc came next with 10.6 million units valued at N2.1 million, and 11 Plc was in third with 6,45 units sold for N1.4 million.
IGI Plc closed the day as the most active stock by volume (year-to-date) with 10.6 million units sold for N2.1 million, FrieslandCampina Wamco Nigeria Plc came next with 1.4 million units valued at N55.8 million, and UBN Property Plc followed with 275,740 units worth N545,965.
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