Shareholders Reject Transfer Of Unclaimed Dividends To CBN

Shareholders have rejected decisions by the National Assembly to transfer unclaimed dividends to the Central Bank of Nigeria (CBN) for management.

They described the move as a gross violation of shareholders’ rights, a betrayal of investor trust, and a dangerous precedent threatening the sanctity of private property and capital market integrity.

Our correspondent reports that the rejection followed a directive by the House of Representatives Public Accounts Committee (PAC) to the CBN.

The committee took the decision after a team of CBN, led by Deputy Governor of Operations Directorate, Bala Bello, and the Minister of Finance, Wale Edun, appeared before a Joint Committee of PAC and Public Assets.

During the session, the panel grilled the CBN team on the apex bank’s failure to remit operating surplus funds as well as its management of unclaimed dividends and dormant account balances.

The chairmen of both committees, Bamidele Salam and Ademorin Kuye, were reported to have said a letter had been forwarded to the CBN Governor, Yemi Cardoso, over the matter.

In the letter, the lawmakers recall 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 joint committee faulted CBN’s position that the Banks and Other Financial Institutions Act (BOFIA) 2020 grants it the authority to manage and control dormant account balances.

It directed that CBN furnish it with the total value of unclaimed dividends and dormant account balances on or before June 30.

It also directed the CBN to ensure that all unclaimed dividends and dormant account balances, as defined above, are transferred to the Unclaimed Funds Trust Fund account within 14 days of receipt of its letter.

Reacting, the Independent Shareholders Association of Nigeria (ISAN), in a statement signed by its national coordinator, Moses Igbrude, said it strongly rejected the “unconstitutional” transfer of unclaimed dividends to the Central Bank.

“We, unequivocally condemn the recent decision by the National Assembly to pass legislation mandating the transfer of all unclaimed dividends from company registrars to the Central Bank of Nigeria (CBN) for management,” ISAN stated.

ISAN cited violation of ownership rights, undermining of market confidence, lack of stakeholder consultation, lack of transparency or safeguards as part of reasons for rejecting the directive.

The body also noted that the decision will be counterproductive to financial inclusion.

“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,” it said.

ISAN demanded an immediate suspension of its implementation.

It threatened to mobilise legal resources to challenge the decision in court “as unconstitutional, unjust, and economically detrimental.”

The body, however, proposed that efforts should focus on reforming the claims process at the registrar level through technology, public education, and standardisation — 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,” ISAN said.