The Nigeria Securities & Exchange Commission issued a circular clarifying the treatment of unclaimed dividends of public companies and directing paying companies and registrars to continue honouring qualifying shareholder requests for payment, rather than treating older unclaimed dividends as “statute-barred”, pending the Federal Government’s operationalisation of the Unclaimed Funds Trust Fund (UFTF). The Commission cited Section 60 of the Finance Act 2020, under which dividends declared by a public company quoted on the Nigerian Exchange Limited that remain unclaimed for six years or more are expected to be transferred to the UFTF to be held in trust and managed until claimed by the shareholder. Shareholders are entitled to continue to claim dividends that were not statute-barred (not above 12 years) before 31 December 2020, and public companies and registrars are required to comply immediately, honour such requests with effect from 31 December 2020, and submit periodic reports in the manner prescribed in the Commission’s Rules and Regulations. The direction is framed as an interim measure until the UFTF is set up and operationalised by the Federal Government pursuant to Sections 3(4)(e) and 93 of the Investments and Securities Act 2025.
Nigeria Securities & Exchange Commission 2025-05-06
Nigeria Securities & Exchange Commission directs public companies and registrars to honour unclaimed dividend claims pending Unclaimed Funds Trust Fund
The Nigeria Securities & Exchange Commission issued a circular clarifying that public companies and registrars must continue honouring shareholder requests for unclaimed dividends, rather than treating them as "statute-barred," pending the operationalisation of the Unclaimed Funds Trust Fund (UFTF). This directive, based on Section 60 of the Finance Act 2020, applies to dividends unclaimed for six years or more, which are to be transferred to the UFTF. The measure is interim until the UFTF is established under the Investments and Securities Act 2025.