The Independent Shareholders Association of Nigeria (ISAN) has strongly opposed the move to transfer unclaimed dividends to the Central Bank of Nigeria (CBN), describing it as unconstitutional and a violation of investor rights.
Reacting to the National Assembly’s recent approval of a law mandating the transfer of unclaimed dividends from company registrars to accounts managed by the Securities and Exchange Commission (SEC) via the Debt Management Office in the CBN, ISAN said the decision undermines investor trust and breaches the principle of private property.
“This move is a gross violation of shareholders’ rights, a betrayal of investor confidence, and a dangerous precedent for the integrity of Nigeria’s capital market,” ISAN said in a statement.
The group emphasized that unclaimed dividends remain the property of individual investors and their legal heirs, regardless of how long they remain unclaimed, and should not be treated as public funds.
They criticised the legislation as a form of indirect expropriation, warning that it would erode investor confidence — both local and foreign — in Nigeria’s capital markets. ISAN also condemned the lack of consultation with key stakeholders including shareholders, registrars, and capital market operators.
“There are no clear guidelines on how the SEC plans to manage the funds, what returns will be due to investors, or how claims will be processed. This raises serious concerns about bureaucratic inefficiency and potential misuse,” the statement added.
ISAN argued that rather than centralising unclaimed dividends, efforts should be focused on reforming the claims process through technological innovation, public awareness, and standardised procedures at the registrar level.
They urged President Bola Tinubu not to sign the bill into law, and if already signed, to suspend its implementation pending a judicial review.
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The association also disclosed plans to challenge the legislation in court, describing it as unjust, unconstitutional, and harmful to Nigeria’s economic interests.
“We call on all shareholders to reject this unjust policy. Your dividends are your legal right — not a fallback fund for the government. The future of Nigeria’s investment climate must be built on respect for ownership, transparency, and investor confidence,” ISAN concluded.
