Shareholders under the umbrella of Independent Shareholders Association of Nigeria (ISAN), have rejected decisions by the National Assembly to transfer unclaimed dividends to the Central Bank of Nigeria (CBN) for management.
ISAN in a release on June 28 signed by its national coordinator, Moses Igbrude said “We, of the Independent Shareholders Association of Nigeria (ISAN), strongly reject the Unconstitutional Transfer of Unclaimed Dividends to the Central Bank.
They believe that future of Nigeria’s investment climate “must be built on fairness, property protection, and inclusive growth — not arbitrary power grabs.”
“We unequivocally condemn 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)”.
The lawmakers recently recalled that the Finance Act 2020 mandates that dividends of all listed companies in Nigeria, which have remained unclaimed for six years or more, as well as balances in accounts dormant for six years in Deposit Money Banks, shall be transferred to an established fund known as the Unclaimed Funds Trust Fund
The House of Representatives Public Accounts Committee (PAC) had among others directed the CBN to furnish it with the total value of unclaimed dividends and dormant account balances on or before June 30. The House of Representative committee also directed the CBN to ensure that all unclaimed dividends and dormant account balances are transferred to the Unclaimed Funds Trust Fund account within 14 days of receipt of its letter.
“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”, ISAN said.
On why ISAN opposes this law, they said, it is a “violation of ownership rights”.
“Unclaimed dividends are not government revenue. They remain the legal property of individual investors and their heirs, regardless of the time elapsed. The attempt to centralise and manage these funds under SEC control is a form of indirect expropriation,” ISAN said.
They also noted that the move undermines market confidence. “This law will shake investor confidence in Nigeria’s capital markets. Local and international investors need assurance that their returns will be protected, not confiscated under state pretexts,” the shareholders said.
According to them, the law lacks stakeholder’s consultation. “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,” ISAN said.
They further said there are no clear frameworks on how the SEC intends to manage these funds, what returns will be offered to rightful owners, or how and when claims will be honoured. “This is a recipe for bureaucratic mismanagement and corruption,” ISAN said.
According to them, the law is counterproductive to financial inclusion, adding that, “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”.
As a result, ISAN demands immediate suspension of the law’s implementation. “We call on President Bola Ahmed Tinubu not to assent to this law. If already signed, we demand an immediate suspension pending judicial review. ISAN 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 standardisation — not through centralisation and state seizure,” ISAN said.
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,” they said.
