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 Dipo Olowookere
The Nigerian Exchange (NGX) Limited witnessed Santa Claus rally on Wednesday after it closed higher by 0.12 per cent.
Strong demand for Nigerian stocks lifted the All-Share Index (ASI) by 185.70 points during the pre-Christmas trading session to 153,539.83 points from 153,354.13 points.
In the same vein, the market capitalisation expanded at midweek by N118 billion to N97.890 trillion from the preceding day’s N97.772 trillion.
Investor sentiment on Customs Street remained bullish after closing with 36 appreciating equities and 22 depreciating equities, indicating a positive market breadth index.
Guinness Nigeria chalked up 9.98 per cent to trade at N318.60, Austin Laz improved by 9.97 per cent to N3.20, International Breweries expanded by 9.85 per cent to N14.50, Transcorp Hotels rose by 9.83 per cent to N170.90, and Aluminium Extrusion grew by 9.73 per cent to N16.35.
On the flip side, Legend Internet lost 9.26 per cent to close at N4.90, AXA Mansard shrank by 7.14 per cent to N13.00, Jaiz Bank declined by 5.45 per cent to N4.51, MTN Nigeria weakened by 5.21 per cent to N504.00, and NEM Insurance crashed by 4.74 per cent to N24.10.
Yesterday, a total of 1.8 billion shares valued at N30.1 billion exchanged hands in 19,372 deals versus the 677.4 billion shares worth N20.8 billion traded in 27,589 deals in the previous session, implying a slump in the number of deals by 29.78 per cent, and a surge in the trading volume and value by 165.72 per cent and 44.71 per cent apiece.
Abbey Mortgage Bank was the most active equity for the day after it sold 1.1 billion units worth N7.1 billion, Sterling Holdings traded 127.1 million units valued at N895.9 million, Custodian Investment exchanged 115.0 million units for N4.5 billion, First Holdco transacted 40.9 million units valued at N2.2 billion, and Access Holdings traded 38.2 million units worth N783.3 million.
By Adedapo Adesanya
Nigerian food and beverage company, Rite Foods Limited, has extended warm Yuletide greetings to Nigerians as families and communities worldwide come together to celebrate the Christmas season and usher in a new year filled with hope and renewed possibilities.
In a statement, Rite Foods encouraged consumers to savour these special occasions with its wide range of quality brands, including the 13 variants of Bigi Carbonated Soft Drinks, premium Bigi Table Water, Sosa Fruit Drink in its refreshing flavours, the Fearless Energy Drink, and its tasty sausage rolls — all produced in a world-class facility with modern technology and global best practices.
Speaking on the season, the Managing Director of Rite Foods Limited, Mr Seleem Adegunwa, said the company remains deeply committed to enriching the lives of consumers beyond refreshment. According to him, the Yuletide period underscores the values of generosity, unity, and gratitude, which resonate strongly with the company’s philosophy.
“Christmas is a season that reminds us of the importance of giving, togetherness, and gratitude. At Rite Foods, we are thankful for the continued trust of Nigerians in our brands. This season strengthens our resolve to consistently deliver quality products that bring joy to everyday moments while contributing positively to society,” Mr Adegunwa stated.
He noted that the company’s steady progress in brand acceptance, operational excellence, and responsible business practices reflects a culture of continuous improvement, innovation, and responsiveness to consumer needs. These efforts, he said, have further strengthened Rite Foods’ position as a proudly Nigerian brand with growing relevance and impact across the country.
Mr Adegunwa reaffirmed that Rite Foods will continue to invest in research and development, efficient production processes, and initiatives that support communities, while maintaining quality standards across its product portfolio.
“As the year comes to a close, Rite Foods Limited wishes Nigerians a joyful Christmas celebration and a prosperous New Year filled with peace, progress, and shared success.”
By Adedapo Adesanya
The Naira closed the pre-Christmas trading day positive after it gained N6.61 or 0.46 per cent against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, December 24, trading at N1,443.38/$1 compared with the previous day’s N1,449.99/$1.
Equally, the Naira appreciated against the Pound Sterling in the same market segment by N1.30 to close at N1,949.57/£1 versus Tuesday’s closing price of N1,956.03/£1 and gained N2.94 on the Euro to finish at N1,701.31/€1 compared with the preceding day’s N1,707.65/€1.
At the parallel market, the local currency maintained stability against the greenback yesterday at N1,485/$1 and also traded flat at the GTBank forex counter at N1,465/$1.
Further support came as the Central Bank of Nigeria (CBN) funded international payments with additional $150 million sales to banks and authorised dealers at the official window.
This helped eased pressure on the local currency, reflecting a steep increase in imports. Market participants saw a sequence of exchange rate swings amidst limited FX inflows.
Last week, the apex bank led the pack in terms of FX supply into the market as total inflows fell by about 50 per cent week on week from $1.46 billion in the previous week.
Foreign portfolio investors’ inflows ranked behind exporters and the CBN supply, but there was support from non-bank corporate Dollar volume.
As for the cryptocurrency market, it witnessed a slight recovery as tokens struggled to attract either risk-on enthusiasm or defensive flows.
The inertia follows a sharp reversal earlier in the quarter. A heavy selloff in October pulled Bitcoin and other coins down from record levels, leaving BTC roughly down by 30 per cent since that period and on track for its weakest quarterly performance since the second quarter of 2022. But on Wednesday, its value went up by 0.9 per cent to $87,727.35.
Further, Ripple (XRP) appreciated by 1.7 per cent to $1.87, Cardano (ADA) expanded by 1.2 per cent to $0.3602, Dogecoin (DOGE) grew by 1.1 per cent to $0.1282, Litecoin (LTC) also increased by 1.1 per cent to $76.57, Solana (SOL) soared by 1.0 per cent to $122.31, Binance Coin (BNB) rose by 0.6 per cent to $842.37, and Ethereum (ETH) added 0.3 per cent to finish at $2,938.83, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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