According to Vanguard, as of May this year, an estimated ₦190 billion in unclaimed dividends is currently dormant in Nigeria’s capital market—funds that rightfully belong to investors but remain uncollected due to outdated records, lack of awareness, and procedural hurdles. Here’s everything you need to know to recover these dividends—and why the Securities and Exchange Commission (SEC) is leading the charge to ensure fairness and improve investor experience.

1. What Are Unclaimed Dividends?

Dividends are payouts from a company’s profits to its shareholders. When dividends aren’t collected—whether due to lost certificates, outdated bank details, or investor ignorance—they become unclaimed dividends. Typically, they sit idle until action is taken. In some cases, the dividends belong to a deceased person whose family members or beneficiaries are unaware of the existence of the shares and the dividends.

2. Legal Framework & SEC Directive

a. Changes in Law

• Under Section 60 of the Finance Act 2020 (effective December 31, 2020), any dividend unclaimed for six or more years must be transferred to the Unclaimed Funds Trust Fund (UFTF), where it remains available for claim later.

b. SEC’s May 2025 Clarification

In May 2025, following reports that companies were denying some claims for being statute-barred, SEC issued the following clarification:

The attention of the Securities and Exchange Commission (the Commission) has been drawn to the fact that paying companies and their Registrars have continued to treat unclaimed dividends of public companies that are older than 12 years as being “statute-barred” without recourse to the provisions of the Finance Act 2020. In response to various inquiries on the subject, the Commission hereby clarifies as follows:

1. The import of the provisions of Section 60 of the Finance Act 2020 (December 31, 2020), is that, where dividends declared by a public company quoted on the Nigerian Exchange Limited remained unclaimed for a period of six years or more, such dividends are expected to be transferred to the Unclaimed Funds Trust Fund (UFTF) to be held in trust and managed pending when the shareholder presents a claim for such unclaimed dividends.

2. Shareholders are entitled to continue to claim dividends that were not statute barred (i.e. not above 12 years) before December 31, 2020 when the Finance Act 2020, came into effect.

Pending the setting up and operationalization of the UFTF by the Federal Government, pursuant to its powers under Sections 3 (4) (e) and 93 of the Investments and Securities Act 2025, the Commission hereby directs public companies and their Registrars to continue to honour all requests by shareholders for the payment of unclaimed dividends as described above, with effect from December 31, 2020. Public companies and Registrars are required to effect immediate compliance with this directive and submit periodic reports on same in the manner prescribed in the Commission’s Rules and Regulations.

3. The SEC’s Push for e‑Dividend Registration

To curb unclaimed dividends and improve efficiency, the SEC has published a list of shareholding accounts that haven’t yet mandated for e‑dividend and encouraged a shift to electronic payment to increase transparency, speed processing, and help ensure investors receive their rightful income.

Investors whose names appear are strongly advised to register electronically to receive payment using the step below.

4. How to Claim Your Unclaimed Dividends

Follow these steps to reclaim your money:

1. Check the SEC Non‑Mandated List
2. Download the e‑Dividend Mandate Form
   Available on your registrar’s website or the SEC portal.
3. Submit the Completed Form & Documents including ID, passport photo, and bank information electronically to your registrar.
4. Verification & Payment
   Registrars and banks typically process e‑mandates within 72 hours. After verification, funds will be electronically transferred to your bank account.
5. Follow Up If Needed
   If payment stalls, copy the SEC in an email (sec@sec.gov.ng) to prompt action.

5. Why Leave Money on the Table?

• Despite the hard economic condition in Nigeria, over ₦190 billion is dormant in Nigeria’s markets. If people claim these funds, it will bring relief to so many and boost economic activity.
• E‑dividend has reduced waiting times from months to days. Why not claim what is yours especially since you can now do it from the comfort of your home electronically.
• Although I encourage you to apply to claim these dividends yourself using the steps outlined above and on SEC’s website, if your case is complicated, you may hire any of the companies currently offering service to recover these dividends.
• While searching SEC’s website to see if you have unclaimed dividends, also check the names of your friends and relatives and notify them if you find they have unclaimed dividends. This writer found at least four relatives who have unclaimed dividends!

6. Tips & Best Practices

• Always Update Your Details – Keep your address and bank info current with your registrar and broker.
• Use e‑Dividend for Future Payouts – Ensure funds go directly to you, not postal mail or paper warrants.
• Act on Dividend Warrants Promptly – Don’t let warrants sit for months; electronic mandates are faster and safer.
• Document Everything – Track submission and confirmation emails to avoid disputes.

In Conclusion

By adopting e‑dividend registration, checking the SEC’s non‑mandated list, and submitting the correct forms, Nigerian investors can recover billions in unclaimed dividends—plus securely receive future payments. The SEC’s clarifications under the Finance Act 2020 and ISA 2025 reinforce that you haven’t “lost” these funds. With modern processes and regulatory support, your rightful returns are just a few clicks away.

References & Further Reading:

None. Relevant sources are linked in the body of the article.