Unclaimed dividends in Nigeria’s capital market rose to N242 billion in 2025, up from N190 billion in 2023, exposing persistent weaknesses in shareholder records and Know-Your-Customer (KYC) processes, despite the growing adoption of electronic dividend payment systems.
Capital market experts attributed the rising volume of unclaimed dividends largely to outdated or inaccurate shareholder records, particularly KYC information and bank account details, which continue to hinder seamless payment of investors’ entitlements.
The Securities and Exchange Commission (SEC) and registrars have repeatedly urged shareholders to complete e-dividend mandate forms and update their records to facilitate the direct crediting of dividends into their bank accounts.
According to a report by Coronation titled “Digitising Registrar Services in Nigeria: e-Dividend, Dematerialisation, and the Future of Shareholder Experience,” unclaimed dividends remain one of the most persistent challenges facing Nigeria’s capital market.
The report noted that the previous reliance on physical dividend warrants created significant bottlenecks, including delivery failures, outdated shareholder information, manual processing delays, and difficulties in reaching investors whose personal details had changed over time.
Speaking on the issue, the Managing Director and Chief Executive Officer of Coronation Registrars, Oluseyi Owoturo, said the e-dividend system was introduced to address these structural challenges by enabling direct payment of dividends into shareholders’ nominated bank accounts after proper validation of mandates and account details.
According to him, the system reduces dependence on physical instruments while promoting faster, more transparent, and more efficient distribution of shareholder entitlements.
Owoturo noted that the SEC has continued to champion e-dividend adoption as part of broader efforts to reduce unclaimed dividends and improve investor experience in the capital market.
“For shareholders, the benefit is clear: validated e-dividend mandates make it easier to receive entitlements and remain actively connected to the market. For issuers, efficient dividend processing supports corporate reputation, reduces administrative burdens, and strengthens confidence in the execution of corporate actions,” he said.
He stressed that the effectiveness of the e-dividend platform depends on accurate KYC information, proper bank account validation, efficient exception management, and sustained investor education.
“Digitisation reduces friction, but trust is built when every part of the process is governed with precision,” Owoturo added.
Vice President of Highcap Securities Limited, David Adonri, said accurate KYC practices remain critical to addressing the challenge of unclaimed dividends and ensuring that shareholders receive their rightful entitlements.
He explained that effective customer identification and verification processes would enable financial institutions and registrars to reconnect investors with unclaimed funds while improving transparency and confidence in the market.
Adonri noted that a robust KYC framework would enhance financial inclusion and accountability, adding that prompt dividend payments encourage reinvestment and boost market activity.
“When dividends are paid promptly, investors tend to reinvest, thereby increasing market turnover. Unclaimed dividends sitting with registrars neither generate returns for investors nor inspire confidence in the market,” he said.
Stakeholders believe that continued investor education, improved digital infrastructure, and stronger compliance with KYC requirements will be crucial in reversing the growth of unclaimed dividends and strengthening participation in Nigeria’s capital market.
