The Securities and Exchange Commission (SEC) has announced a new identity management initiative aimed at addressing the issue of unclaimed dividends in Nigeria.
This initiative was unveiled during a recent workshop on Identity Management for the capital market, held in Lagos.
Director- General (DG) of the SEC, Mr. Emomotimi Agama, emphasised the importance of the initiative, noting that it seeks to provide a lasting solution to unclaimed dividends, lower entry barriers to the market, and attract more participation from the youth demographic, which is currently underrepresented.
The workshop gathered stakeholders and industry players to discuss solutions to the ongoing identity management challenges in the capital market.
According to Mr. Agama, these challenges have contributed to the rising volume of unclaimed dividends, which negatively affects the market’s appeal and competitiveness.
“The commission is committed to this initiative as its success could significantly enhance the potential of our market,” he stated.
The effort to address identity management issues dates back to 2018, following discussions at the third Capital Market Committee meeting.
In January 2019, the SEC established an in-house committee to identify and tackle legacy identity management problems within the market.
The committee’s report highlighted the need for consolidated investor data and a lasting solution to these challenges.
In 2021, the SEC replaced the in-house committee with a market-wide committee to conduct a more comprehensive study of the Nigerian identity crisis, particularly within the capital market.
