Economy
E-Dividends Registration: Investors Rush to Beat Deadline
By Dipo Olowookere
There is last-minute rush by shareholders in the Nigerian capital market to register for free for the electronic dividend (e-dividend) payment system introduced by the Securities and Exchange Commission (SEC).
The regulatory agency fixed December 31, 2017 as deadline for the free registration of the e-dividend payment system.
Last month, while addressing capital market correspondents, the suspended Director General of SEC, Mr Mounir Gwarzo, had lamented the low level of enrolment for the e-dividend exercise, noting that the level of compliance had dropped lately.
He had said in August 2017, a total of 50,819 investors registered for the e-dividend, while it increased to 59,204 in September, but dropped to 37,153 in October.
Mr Gwarzo had warned that SEC would not extend the December 31, 2017 deadline for the registration despite pleas by stakeholders for an extension.
According to him, SEC has been underwriting the cost of the e-dividend and from next year, investors will have to pay N150 for the exercise.
“We realised that there is a slow pace in terms of the implementation of the e-dividend as in the last three-four months, there has not been appreciable increase in terms of number of people registering.
“By December 31, 2017, any Nigerian that does not register for e-dividend will now have to pay N150 for registration.
“We have been pursuing this initiative since last year and SEC has been underwriting the cost. The moment you start extending, people will think they have 100 years to do it.
“I don’t think we should keep on extending it, we want to keep our word on that December 31. Whoever that does not register should be able to pay the amount stipulated,” Mr Gwarzo had told newsmen.
At the first Capital Market Committee (CMC) meeting for 2017, Mr Gwarzo had disclosed that about 2.2 million investors in the capital market registered for the e-dividend payment system.
But with three working days left before the deadline, there is a huge rush for registration.
From January 1, 2018, investors in the capital market will no longer be able to receive their dividends physically, but would be paid directly into their bank accounts.
Business Post gathered that investors, who were yet to register for the exercise, are in a last-minute rush to key into the system.
However, some of them complained that the process of registering for the exercise has been cumbersome.
According to the Nation, a cross section of capital market stakeholders at the weekend showed increased activities on the registration. At the various registration points – banks, registrars and stockbrokers, officials confirmed that there have been noticeable increases in request for e-dividend.
Stakeholders, who spoke with The Nation at the weekend called on SEC to extend the e-dividend registration citing hitches that had slowed down the process of registration. They noted that given the importance of the e-dividend system to the stock market, SEC should allow the e-dividend and dividend warrants to run concurrently while improving enlightenment campaign for the e-dividend.
Shareholders United Front (SUF) National Coordinator, Mr Gbenga Idowu, said SEC should extend the deadline for the e-dividend registration to enable retail shareholders that are having difficulties with the registration to resolve the issues.
He urged SEC to widen its publicity campaign to other nooks and crannies of the country.
Standard Shareholders Association of Nigeria National President, Mr Godwin Anono, said SEC should allow open-ended registration for the e-dividend as part of its market development mandate.
He alleged that registrars were frustrating shareholders with unnecessary additional requirements for the e-dividend even when shareholders have provided their Biometric Verification Number (BVN).
According to him, many registrars were stalling the e-dividend registration because they are the main beneficiaries of the lopsided system where dividends are either delayed or categorised as unclaimed.
Constance Shareholders Association of Nigeria National President, Mallam Shehu Mikhail, said SEC should compel the three main stakeholders in the registration process – the Central Securities Clearing System, registrars and stockbroking firms to harmonise their data base using the Know-Your-Customer (KYC) information from the stockbroking firms.
SEC last year announced last June 30, as deadline for issuing physical dividend warrants but later extended it to December 31 to shareholders by quoted companies to tackle unclaimed dividends and mitigate the risks associated with warrants.
In November 2015, SEC launched the E-Dividend Mandate Management System (E-DMMS) with the Central Bank of Nigeria, Nigerian Interbank Settlement System (NIBSS) and other stakeholders. The E-DMMS is an E-dividend payment portal that ensures the payment of dividends into a shareholder’s account.
It is believed that these steps taken by the Commission would help to reduce the increase of unclaimed dividend which stood at N117 billion as at December 31, 2016. Of this figure, N86 billion was in the custody of the paying companies while N13.7 billion was with the registrars. From November 2015, when the SEC kicked off the campaign on e-dividends, about N42.2 billion has been paid to investors from the backlog of unclaimed dividends.
By Adedapo Adesanya
Nigeria added 150,000 barrels per day to its crude production in November 2024 as it continues to pursue an ambitious 2 million barrels per day target.
According to the Organisation of the Petroleum Exporting Countries (OPEC), Nigeria’s oil production rose to 1.48 million barrels per day in November, up from 1.33 million barrels per day the previous month.
In its Monthly Oil Market Report (MOMR), OPEC revealed that at 1.48 million barrels per day, it is the continent’s leading oil producer, surpassing Algeria’s 908,000 barrels per day and Congo’s 268,000 barrels per day.
Business Post reports that OPEC doesn’t account for condensates, which Nigeria’s accounts for in its broader 2 million barrels per day target.
Despite the surge in production levels, Nigeria is still under producing its 1.5 million barrels per day output quota under a deal involving OPEC and 10 other producers known as OPEC+.
OPEC said it relied on primary data gotten through direct communication, noting that secondary sources reported 1.417 million barrels per day as Nigeria’s crude production in November — up from 1.4 million barrels per day in October.
The data also shows that OPEC’s total oil production among its 12 members rose by 104,000 barrels per day in the month under review.
According to secondary sources, the total of the 12 OPEC countries’ crude oil production averaged 26.66 million barrels per day in November 2024.
“Crude oil output increased mainly in Libya, Iran, and Nigeria, while production in Iraq, Venezuela, and Kuwait decreased”, OPEC said.
“At the same time, total non-OPEC DoC crude oil production averaged 14.01 mb/d in November 2024, which is 219 tb/d higher, m-o-m. Crude oil output increased mainly in Kazakhstan and Malaysia,” the organisation added.
In a related development, OPEC trimmed its 2024 and 2025 oil demand growth forecasts for the fifth time this year.
Now, the cartel expects the world’s oil demand growth at 1.61 million barrels per day from the previously 1.82 million barrels per day.
For 2025, OPEC says the world oil demand growth forecast is now at 1.45 million barrels per day, a 900,000 barrels per day cut from the previously expected 1.54 million barrels per day.
On the changes, OPEC says that the downgrade for this year owes to more bearish data received in the third quarter of 2024 while the projections for next year relate to the potential impact that will arise from US tariffs.
By Adedapo Adesanya
The duo of Afriland Properties Plc and Geo-Fluids Plc crashed the NASD Over-the-Counter (OTC) Securities Exchange by a marginal 0.06 per cent on Wednesday, December 11 due to profit-taking activities.
The OTC securities exchange experienced a downfall at midweek despite UBN Property Plc posting a price appreciation of 17 Kobo to close at N1.96 per share, in contrast to Tuesday’s closing price of N1.79.
Business Post reports that Afriland Properties Plc slid by N1.14 to finish at N15.80 per unit versus the preceding day’s N16.94 per unit, and Geo-Fluids Plc declined by 1 Kobo to trade at N3.92 per share compared with the N3.93 it ended a day earlier.
At the close of transactions, the market capitalisation of the bourse, which measures the total value of securities on the platform, shrank by N650 million to finish at N1.055 trillion compared with the previous day’s N1.056 trillion and the NASD Unlisted Security Index (NSI) went down by 1.86 points to wrap the session at 3,012.50 points compared with 3,014.36 points recorded in the previous session.
The alternative stock market was busy yesterday as the volume of securities traded by investors soared by 146.9 per cent to 5.9 million units from 2.4 million units, as the value of shares transacted by the market participants jumped by 360.9 per cent to N22.5 million from N4.9 million, and the number of deals increased by 50 per cent to 21 deals from 14 deals.
When the bourse closed for the day, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units valued at N3.9 billion, followed by Okitipupa Plc with 752.2 million units worth N7.8 billion, and Afriland Properties Plc 297.5 million units sold for N5.3 million.
Also, Aradel Holdings Plc, which is now listed on the Nigerian Exchange (NGX) Limited after its exit from NASD, remained the most active stock by value (year-to-date) with 108.7 million units sold for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units worth N5.3 billion.
By Adedapo Adesanya
The euphoria around the recent appreciation of the Naira eased on Wednesday, December 11 after its value shrank against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N5.23 or 0.3 per cent to N1,547.50/$1 from the N1,542.27/$1 it was valued on Tuesday.
It was observed that spectators’ activities may have triggered the weakening of the local currency in the official market at midweek as they tried to fight back and ensure the value of funds in foreign currencies strengthened.
The domestic currency was regaining its footing after the Central Bank of Nigeria (CBN) launched an Electronic Foreign Exchange Matching System (EFEMS) platform to tackle speculation and improve transparency in Nigeria’s FX market.
At midweek, the Nigerian currency depreciated against the Pound Sterling by N3.56 to close at N1,958.68/£1 compared with the preceding day’s N1,955.12/£1 and against the Euro, it slumped by 34 Kobo to trade at N1,612.66/€1, in contrast to the previous session’s N1,613.00/€1.
As for the black market segment, the Naira lost N45 against the American currency during the session to quote at N1,670/$1 compared with the N1,625/$1 it was traded a day earlier.
A look at the cryptocurrency market showed a recovery following profit-taking as the US Consumer Price Index report matched economist forecasts.
The news was enough to convince traders that the Federal Reserve is certain to trim its benchmark fed funds rate another 25 basis points at its meeting next week.
The move also saw Bitcoin (BTC), the most valued coin, return to the $100,000 mark as it added a 2.9 per cent gain and sold for $100,566.12.
The biggest gainer was Cardano (ADA), which jumped by 15.00 per cent to trade at $1.16, as Litecoin (LTC) appreciated by 10.4 per cent to sell for $121.76, and Ethereum (ETH) surged by 7.0 per cent to $3,929.30, while Dogecoin (DOGE) recorded a 6.7 per cent growth to finish at $0.4181.
Further, Binance Coin (BNB) went up by 5.2 per cent to $716.72, Solana (SOL) expanded by 4.6 per cent to $229.77, and Ripple (XRP) increased by 4.2 per cent to $2.43, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
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