Economy
FG’s Control of Unclaimed Dividends Could Cause Mass Exit from NSE—Ayeku
By Dipo Olowookere
President of the Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN), Mr Bode Ayeku, has warned that many companies listed on the Nigerian Stock Exchange (NSE) may begin to consider delisting their shares because of the new policy of the federal government.
The Nigerian government is planning to take control of the unclaimed dividends in the capital market believed to be worth N200 billion. This is to be done through the Financial Bill to be forwarded to the National Assembly soon.
Section 39 of the document seeks to establish an Unclaimed Dividends Trust Fund for the transfer of idle shareholders’ reward of firms listed on the stock exchange for three for the use of the federal government.
Also, if the dividends remain unclaimed for 12 years, the funds would become government revenue and would be transferred from the trust fund to the federation account as federation revenue.
Business Post gathered that it would become an offence for any company that fails to transfer its unclaimed dividend to the fund.
The punishment is the payment of five times the value of the unclaimed dividends with accumulated interests at the monetary policy rate (MPR) rate of the Central Bank of Nigeria (CBN), which is currently at 11.50 per cent.
But Mr Ayeku sees this policy as counterproductive because according to him, the federal government never made any attempt to solve the root cause of the unclaimed dividends.
Speaking at the 44th annual conference of the institute last Thursday in Lagos, he said the control of the unclaimed dividends could make companies delist from the NSE as the bill seems to target them.
According to him, this move could compel them to “re-register as private companies as recently done by some companies in order to avoid the take-over of their unclaimed dividends which are private funds.”
The ICSAN leader questioned why the federal government was interested in the idle funds when it “has already collected companies income tax of 30 per cent and education trust fund of 2 per cent from the profit of each company before the dividend was declared, in addition to another 10 per cent withholding tax from such dividend, notwithstanding that it did not invest in the shares of public listed companies generating these unclaimed dividends.”
He advised the government to “replace Section 39 of the Finance Bill 2021 with a provision that unclaimed dividends shall be accessible to shareholders indefinitely and shall not be forfeited by any company after 12 years, but to be kept by the companies as stated in CAMA 2020.”
He argued that, “This is because companies have a contractual responsibility to pay dividends to shareholders and this Bill has the implication of inducing a breach of such contract.”
Mr Ayeku further said the various state governments should “review their complex, unfair and exploitative probate process; arbitrary valuation of assets of deceased leading to compromise by probate officials; high estate duty of 10 per cent which dependents of deceased are compelled to pay notwithstanding that probate/letter of administration is just a change of name and not the sale of assets of the deceased.”
“They should fix a time frame of a maximum of two months for issuance of probate after receipt of complete documentation by the probate registry of each state to enable executors/administrators of deceased shareholders quick claim their unclaimed dividends in order to reduce their hardship,” he added.
By Adedapo Adesanya
The federal government has imposed an immediate nationwide ban on the export of wood and allied products, revoking all previously issued licenses and permits to exporters.
The announcement was made on Wednesday by the Minister of Environment, Mr Balarabe Lawal, during the 18th meeting of the National Council on Environment in Katsina State.
Mr Lawal said the directive, outlined in the Presidential Executive Order titled Presidential Executive Order on the Prohibition of Exportation of Wood and Allied Products, 2025, became necessary to curb illegal logging and deforestation across the country.
“Nigeria’s forests are central to environmental sustainability, providing clean air and water, supporting livelihoods, conserving biodiversity, and mitigating the effects of climate change,” the Minister said, warning that the continued exportation of wood threatens these benefits and the long-term health of the environment.
The order, published in the Extraordinary Federal Republic of Nigeria Official Gazette No. 180, Vol. 112 of 16 October 2025, relies on Sections 17(2) and 20 of the 1999 Constitution (as amended), which empower the state to protect the environment, forests, and wildlife and prevent the exploitation of natural resources for private gain.
Under the new policy, security agencies and relevant ministries are expected to enforce a total clampdown on illegal logging activities nationwide.
On his part, the Katsina State Deputy Governor, Mr Faruk Lawal Jobe highlighted the state’s history of pioneering socio-economic policies that have influenced national policy. He emphasized the importance of collaboration in addressing environmental challenges across the country.
“Environmental sustainability is critical to achieving growth and improving the quality of life of our people,” he said. “Our administration has prioritised initiatives aimed at combating desertification and promoting afforestation.”
The ban reflects the government’s commitment to safeguarding Nigeria’s shrinking forest cover and addressing climate change, while ensuring sustainable use of natural resources for future generations.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rose by 0.24 per cent on Wednesday, December 17, pulling the Unlisted Security Index (NSI) up by 8.62 points to 3,614.64 points from 3,606.02 points.
In the same vein, the market capitalisation added N4.72 billion to close at N2.164 billion compared with the N2.160 trillion it ended on Tuesday.
The growth was inspired by four securities, which finished on the gainers’ log, neutralising the losses printed by two other securities on the trading platform.
MRS Oil Plc gained N17.90 on Wednesday to end at N196.90 per unit versus N179.00 per unit, NASD Plc appreciated by 59 Kobo to N58.50 per share from N57.91 per share, FrieslandCampina Wamco Nigeria Plc added 15 Kobo to sell at N60.19 per unit versus N60.04 per unit, and Industrial and General Insurance (IGI) Plc rose by 6 Kobo to 64 Kobo per share from 58 Kobo per share.
On the flip side, Golden Capital Plc extended its loss by 76 Kobo to end at N7.75 per unit versus N8.51 per unit, and Central Securities Clearing System (CSCS) Plc slipped by 35 Kobo to N39.65 per share from N40.00 per share.
Yesterday, the volume of transactions increased by 737.3 per cent to 20.4 million units from 2.4 million units, but the value of trades fell by 33.8 per cent to N72.2 million from N109.1 million, and the number of deals slid by 62.5 per cent to 21 deals from 56 deals.
Infrastructure Credit Guarantee Company (InfraCredit) Plc remained the most traded stock by value on a year-to-date basis with 5.8 billion units sold for N16.4 billion, the second position was occupied by Okitipupa Plc with 178.9 million units transacted for N9.5 billion, and the third place was taken by MRS Oil Plc with 36.1 million units worth N4.9 billion.
InfraCredit Plc was also the most traded stock by volume on a year-to-date basis with 5.8 billion units traded for N16.4 billion, followed by IGI Plc with 1.2 billion units valued at N420.7 million, and Impresit Bakolori Plc with 536.9 million units worth N524.9 million.
By Dipo Olowookere
A 0.26 per cent growth was achieved by the Nigerian Exchange (NGX) Limited on Wednesday on the back of sustained bargain-hunting by investors.
This happened despite a pocket of profit-taking, with industrial goods losing 0.63 per cent and the energy index shedding 0.05 per cent.
But the insurance space increased by 2.02 per cent, the banking counter appreciated by 1.48 per cent, the commodity sector improved by 0.48 per cent, and the consumer goods segment rose by 0.03 per cent.
Consequently, the All-Share Index (ASI) went up by 383.71 points to 149,842.82 points from 149,459.11 points and the market capitalisation jumped by N244 billion to N95.525 trillion from N95.281 trillion.
The market breadth index remained positive after the bourse finished with 38 price gainers and 23 price losers, indicating a strong investor sentiment.
The quartet of First Holdco, Lasaco Assurance, Veritas Kapital, and Prestige Assurance gained 10.00 per cent to quote at N39.60, N2.75, N1.76, and N1.65, respectively, while Mecure Industries grew by 9.92 per cent to N50.40.
Conversely, Living Trust Mortgage Bank lost 10.00 per cent to close at N3.15, International Energy Insurance dropped 9.92 per cent to trade at N2.27, McNichols shrank by 6.90 per cent to N2.97, Omatek decreased by 6.84 per cent to N1.09, and Chams dipped by 6.41 per cent to N2.92.
The activity level witnessed a significant surge at midweek, with Ecobank trading 5.3 billion units for N168.7 billion.
Further, First Holdco sold 108.2 million units worth N4.2 billion, Sterling Holdings exchanged 87.3 million units valued at N606.2 million, FCMB transacted 74.3 million units worth N783.6 million, and Access Holdings sold 41.5 million units for N841.4 million.
At the close of trades, market participants traded 5.9 billion units valued at N216.2 billion in 25,205 deals compared with the 1.0 billion units worth N21.8 billion traded in 23,701 deals a day earlier, showing a rise in the trading volume, value, and number of deals by 490.00 per cent, 891.74 per cent, and 6.35 per cent, respectively.
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