The House of”Representatives has ordered it’s Capital Market and Institutions Committee to investigate dividends of unclaimed shares in the capital market, valued at more than N126.03 billion.
Latest Nigeria newspaper report that This followed the unanimous approval of a motion presented by Representative Babangida Ibrahim in the plenary session on Wednesday.
The motion was labeled “Need to investigate the increase in the value of unclaimed dividends, withholding of unreimbursed taxes on dividends and their concomitant effects on the economy of the nation.”
Latest Nigeria newspaper report that Ibrahim said that unclaimed dividends had continued to increase over the years, thereby increasing the non-refundable withholding tax on profits in the country.
The legislator said the value of unclaimed dividends increased from N5.1 billion to N103.1 billion between 2002 and November 2016, compared to the amount of N2.09 billion in 1999.
He added that the value of unclaimed dividends as of March 2019 was N126.03 billion, almost three years after the intervention of the 8th Chamber.
Latest Nigeria newspaper report that The Chamber knows the mechanisms established to address the problem of increasing the value of unclaimed dividends.
“This includes the adoption of the electronic dividend payment method, the dematerialization of share certificates, the acceptance of dividend guarantees in both checking and savings accounts.
“Others were the need for the consolidation of accounts by the Central Securities Compensation System and Registrars and the need to resurrect the publication of names of owners of unclaimed dividends by companies, all of which had been applied without any result significant positive, “he said.
Ibrahim listed the implications of the high value of unclaimed dividends in Nigeria’s economic development to include the confidence of adverse investors, the decrease in the availability of long-term capital for economic growth, and the likely volatility in the market regulation of capitals.
Latest Nigeria newspaper report that The Chamber, therefore, ordered the committee to investigate the increase in the value of unclaimed dividends and withholding of non-refundable taxes on dividends and their attendant effects on the nation’s economy.
He directed the committee to report within six weeks for further legislative action.