COMFORT EKELEME, Business Editor
The Independent Shareholders Association of Nigeria (ISAN) has condemned the National Assembly’s recent decision to pass legislation requiring the transfer of all unclaimed dividends from company registrars to accounts managed by the Securities and Exchange Commission (SEC), as opened by the Debt Management Office in the Central Bank of Nigeria (CBN).
ISAN in a statement jointly signed by its National Coordinator, Comrade Moses Igbrude and the General Secretary, Mr. Eke Chibuzo, called on President Bola Ahmed Tinubu not to assent to this law.
Also, ISAN demand an immediate suspension pending judicial review if already signed, adding that the development is unconstitutional.
According to ISAN, this move is a gross violation of shareholders’ rights, a betrayal of investor trust, and a dangerous precedent that threatens the sanctity of private property and capital market integrity.
Giving reasons for opposing the law, ISAN said it violates ownership rights, stating that unclaimed dividends are not government revenue. They remain the legal property of individual investors and their heirs, regardless of the time elapsed.
The Association further noted that the attempt to centralise and manage these funds under SEC control is a form of indirect expropriation.
ISAN further noted that law undermining market confidence, adding that local and international investors need assurance that their returns will be protected, not confiscated under state pretexts.
“The passage of this law without broad consultations with shareholders, registrars, and capital market stakeholders reflects a disturbing disregard for participatory governance and due process.
“There are no clear frameworks for how the SEC intends to manage these funds, what returns will be offered to rightful owners, or how and when claims will be honored. This is a recipe for bureaucratic mismanagement and corruption.
“Instead of simplifying the claim process for unclaimed dividends, this law adds another layer of opacity and complexity, especially for rural and aging investors who already face hurdles in reclaiming dividends,” ISAN said.
ISAN however, noted that it is mobilising legal resources to challenge this law in court as unconstitutional, unjust, and economically detrimental.
“We propose that efforts should focus on reforming the claims process at the registrar level through technology, public education, and standardization, not through centralization and state seizure.
“We call on all shareholders to join us in rejecting this injustice. Your dividends are your right, not a government fallback fund.
“The future of Nigeria’s investment climate must be built on fairness, property protection, and inclusive growth, not arbitrary power grabs.
