Economy
Unclaimed Dividends: Shareholders May Take SEC To Court
By Dipo Olowookere
There are strong indications that shareholders may consider going to court to stop the Securities and Exchange Commission (SEC) from moving unclaimed dividends of 12 years to the proposed Nigerian Capital Market Development Fund (NCMDF).
The SEC had said some days ago that it was planning to amend the law to make it mandatory for unclaimed dividends to be transformed to the NCMDF.
According to ThisDay, some shareholders are already planning to get a court order to stop the move.
The Companies and Allied Matters Act (CAMA) provides that unclaimed dividends for 12 years are statute barred and are returned to the companies that paid the dividends.
However, SEC has proposed a new rule on application of 12 years and above unclaimed dividends.
“All companies and registrars shall not later than 30 days after the end of every calendar year forward to the Commission a report of unclaimed dividends in their custody, which shall specify compliance with Sub Rule (1) of this Rule. Companies shall disclose details of compliance with this Rule in their annual reports,” SEC said in the rule.
According to the commission in proposing the rule, it relied on provisions of Section 313(1)(n) of the Investments and Securities Act (ISA) 2007, which gives it powers to make rules for the orderly governance of the capital market.
Although some shareholders have kicked against the rule, investigations by THISDAY last Monday showed that the shareholders will resort to legal action should SEC decide to go ahead with the establishment of the NCMDF.
“We have been impressed with other recent efforts made by SEC to tackle the issue of unclaimed dividends in the market. But this new plan is not acceptable to us. We have registered our feelings with the commission. But if it goes ahead with the plan, we shall stop it in the law court,” the leader of shareholders’ group told ThisDay on Monday.
According to him, this is an unpopular move that has failed in the past, stressing that it will fail again.
The National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, had already said his group would resist the plan, which he described as “very offensive” attempt to take their private monies.
He said SEC and other regulators have sufficient funds and avenues to mobilise resources to perform their statutory roles of market development, noting that dividends belong to shareholders and the paying companies.
Also, co-founder of Nigeria Shareholders Solidarity Association (NSSA), Alhaji Gbadebo Olatokunbo, said the plan would lead to corruption and discourage investors from the domestic market.
“Unclaimed dividends belong to shareholders who are the owners of companies and their going back to the companies after 12 years is legitimate. We respectfully call on the federal government to urgently call the regulatory agencies to order, before they add more damage to our already sick economy,” Olatokunbo said.
However, President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr Faruk Umar, hailed the plan, saying it is a healthy development that would discourage sharp practices around the unclaimed dividends.
“The truth of the matter is that bulk of the unclaimed dividend that is more than 12 years belongs to people who are dead, multiple applicants who do not have bank account in their names, or small amounts of money that is not worth claiming. Someone that has not claimed his or her dividend in 12 years is unlikely to do so now. So, the Trust Fund should be established as this will discourage people from benefitting from the unclaimed dividend,” Umar said.
By Adedapo Adesanya
The Naira depreciated on the American currency in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, January 15 by 0.09 per cent or N1.45 to close at N1,551.10/$1 compared with the preceding day’s N1,549.65/$1.
It was the fourth straight session the local currency was losing value on the greenback in the official forex market as the deadline to end the access of Bureaux De Change (BDCs) to the official trading platform nears.
Also, Nigeria’s inflation neared a 29-year high as it rose for the fourth straight month to 34.80 per cent in December 2024 spurred by high festive activities.
On the British currency, which is the Pound Sterling, the domestic currency depreciated by N24.79 to wrap the session at N1,904.43/£1 versus the previous day’s N1,879.64/£1 and against the Euro, it weakened by N14.74 to sell for N1,600.79 per Euro versus N1,586.05/€1.
At the parallel market, the Nigerian Naira traded flat against the US Dollar yesterday at N1,650/$1, according to data obtained by Business Post.
In the cryptocurrency market, most of the tokens gained as the anticipation of Mr Donald Trump’s inauguration as US president is building bullish sentiment for the market, which was also encouraged by a highly anticipated CPI inflation data report in the US.
Litecoin (LTC) grew by 17.7 per cent to quote at $119.82, Ripple (XRP) expanded by 9.0 per cent to a six-year high of $3.10, Solana (SOL) appreciated by 7.2 per cent to trade at $202.81, Dogecoin (DOGE) rose by 5.3 per cent to finish at $0.3789, Ethereum (ETH) increased its value by 4.7 per cent to end at $3,376.28, and Cardano jumped by 3.3 per cent to settle at $1.06, Bitcoin (BTC) gained 2.8 per cent to close at $99,707.22, and Binance Coin (BNB) improved by 1.6 per cent to trade at $710.31, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Adedapo Adesanya
The oil market rose more than 2 per cent on Wednesday, supported by a large draw in US crude stockpiles and potential supply disruptions caused by new US sanctions on Russia.
Brent crude futures appreciated by $2.11 or 2.64 per cent to $82.03 a barrel and the US West Texas Intermediate (WTI) crude grew by $2.54 or 3.28 per cent to close at $80.04 a barrel.
The US Energy Information Administration (EIA) reported an inventory dip of 2 million barrels for the second week of the year.
The change estimated by the EIA compared with a modest draw of around 1 million barrels for the previous week, which also saw sizable fuel inventories build that dragged oil prices lower.
For the week to January 10, the EIA estimated an inventory build of 5.9 million in gasoline, with production averaging 9.3 million barrels daily. This compared with a build of as much as 6.3 million barrels for the previous week when production averaged 8.9 million barrels daily. That build was the second sizable weekly one after 2024 ended with a build of 7.7 million barrels in gasoline inventories.
The latest round of US sanctions on Russian oil could disrupt Russian oil supply and distribution significantly, the International Energy Agency (IEA) said in its monthly oil market report.
The Paris-based agency said that the sanctions on Iran and Russia cover entities that handled more than a third of Russian and Iranian crude exports in 2024, adding that the market will be in surplus this year as supply growth led by countries outside the Organisation of the Petroleum Exporting Countries and its allies, OPEC+ exceeds subdued expansion in world demand.
This aligns with an earlier projection by the EIA which assumes that OPEC+ would roll back its production cuts and that non-OPEC production would continue leaping forward.
Limiting the gains was fresh developments in the Middle East as Israel and Hamas agreed to a deal to halt fighting in Gaza and exchange Israeli hostages for Palestinian prisoners.
OPEC in its monthly oil report on Wednesday forecast stronger demand growth than the IEA of 1.45 million barrels per day this year and, in its first look at 2026, predicted a similar expansion of 1.43 million barrels per day next year.
OPEC expects global oil demand to rise by 1.43 million barrels per day in 2026, maintaining a similar growth rate to 2025.
By Dipo Olowookere
Sustained profit-taking in high-cap stock like Dangote Cement deepened the woes of the Nigerian Exchange (NGX) Limited on Wednesday.
The domestic equity market lost 1.47 per cent at midweek as the National Bureau of Statistics (NBS) revealed that inflation in Nigeria was further elevated in December 2024 by 34.80 per cent, prompting investors to maintain their selling pressure stance.
Data showed that the industrial goods index depreciated by 4.70 per cent at the close of business as the insurance sector slumped by 3.47 per cent.
However, the consumer goods space improved by 0.99 per cent, the energy counter appreciated by 0.15 per cent, and the banking industry gained 0.02 per cent.
When the closing gong was struck by 2:30 pm to signal the close of trading activities yesterday, the All-Share Index (ASI) was down by 1,529.59 points to 102,095.95 points from 103,625.54 points and the market capitalisation went down by N933 billion to N62.257 trillion from N63.190 trillion.
Like the preceding trading day, investor sentiment was weak at midweek after Customs Street ended with 28 price gainers and 39 price losers, implying a negative market breadth index.
Universal Insurance and Dangote Cement were the biggest price losers as they shed 10.00 per cent each to close at 63 Kobo, and N387.90, respectively, as John Holt declined by 9.99 per cent to N8.47, Transcorp Power lost 9.97 per cent to close at N324.00, and Omatek tumbled by 9.89 per cent to 82 Kobo.
Conversely, Dangote Sugar, NASCON, and Sunu Assurances chalked up 10.00 per cent each to sell for N36.85, N38.50, and N6.71, respectively, as SAHCO rose by 9.95 per cent to N33.15, and Austin Laz grew by 9.94 per cent to N1.99.
Business Post reports that investors bought and sold 435.5 million equities valued at N9.4 billion in 12,098 deals during the session versus the 503.3 million equities worth N12.6 billion traded in 12,900 deals on Tuesday, indicating a decline in the trading volume, value, and number of deals by 13.47 per cent, 25.40 per cent and 6.22 per cent apiece.
Universal Insurance topped the activity log with the sale of 70.3 million shares for N46.4 million, AIICO Insurance traded 39.7 million equities valued at N67.5 million, Access Holdings exchanged 16.8 million stocks worth N414.0 million, Livestock Feeds transacted 16.8 million shares valued at N106.8 million, and Nigerian Breweries traded 16.2 million equities worth N518.2 million.
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