HOW TO CLAIM UNCLAIMED DIVIDENDSWHAT IS UNCLAIMED DIVIDEND?After buying shares in a Company, it is expected that the shareholders get to share in the profit of the Company. The shareholder's share in the profit of a Company is called a dividend.&nbsp; This reward can be issued as dividend warrants, electronic payments for every unit of the company’s stock owned, bonus shares or any other form.&nbsp;Unfortunately, the case has been that many shareholders people do not claim their dividends. This could be due to a lack of information, perceived hassle that comes with the processing of the funds, negligence, forgotten investments, death or some other reasons.&nbsp; Furthermore, some dividends are left unclaimed due to changes in the marital status of female stockowners who bought shares in their maiden name.&nbsp; It is important to note that a dividend left unclaimed gradually loses its value over time as the investors do not earn interest on the unclaimed dividend.DATA ANALYSISThe Securities and Exchange Commission (SEC) is the regulatory body that oversees the activity of stock management in Nigeria.From the data made available by the Body, the volume of unclaimed dividends in Nigeria's capital market increased from 158.44bn in 2019 to N168 billion in 2020.&nbsp; &nbsp;It currently stands at about N177 billion.&nbsp;WHAT HAPPENS TO UNCLAIMED DIVIDENDSThe 2021 Finance Act mandates that all unclaimed dividends between the period of 6 to 12 years be transferred to the Unclaimed Funds Trust Fund established for borrowing by the Federal Government to support the 2021 appropriation.&nbsp;Lamido Yuguda, a former Director-general of Securities and Exchange Commission at the Second Post Capital Market Committee (CMC) media briefing on 25th of August 2023 said “Unclaimed dividends have gone into the Unclaimed Dividend Trust Fund and are now managed by the SEC and Debt Management Office. It will remain there until the owners come forward to claim them”It therefore behooves the owners of such shares to come forward to claim their dividends and the process is outlined thus&nbsp;STEPS TO REDEEM UNCLAIMED DIVIDENDSConsult a Capital Market Professional or Bank&nbsp;Your Stockbroker can guide you on what to do to navigate the challenges of dividend recovery by helping you to get your CSCS account number, Send your sample signature to the Registrar if not available,&nbsp; Help track the process and provide investment Advice. Individuals with unclaimed dividends can also approach their respective Banks to help them collect their unclaimed dividends.&nbsp;Use the U-EDIV Search Portal&nbsp;Any individual can take up this process personally as the Securities and Exchange Commission (SEC) has a designated self-service portal called the U-eDIV Search Portal. This is a portal designed and managed by the SEC to enable Investors to register for the collection of their unclaimed dividends and subsequent payment of dividends electronically to their preferred Bank Account&nbsp;<ol><li>Step 1 Log on to the SEC U-eDIV Search Portal at http://sec.gov.ng/nonmandated/</li><li>Step 2 Do a search using the combination of your first name and last name as required on the portal</li><li>Step 3 The portal will display a table showing where you bought the shares and the name of the registrars, with a link to download the e-Mandate form ***Download and fill out Your Registrars e-Mandate Form. This can be filled online and submitted also</li><li>Step 4 Complete the form and send it to your local Bank or your Registrar’s office with a copy of your passport photo or submit it through your Stockbroker. The information required ranges from your address, date of birth, Bank Verification Number, Your preferred account number for collection of the unclaimed dividends, email address,&nbsp;</li></ol>&nbsp;OUTLOOK AND CONCLUSION&nbsp;In our final analysis, we laud the innovative approach of the Securities and Exchange Commission in simplifying the process of claiming unclaimed dividends. There is a gap, especially for married women whose change of name and the attendant introduction of the Bank Verification Number might be an unintentional clog in the process because their current bank data might not reflect the name they used in purchasing the shares.&nbsp;&nbsp;The SEC could make provision in the form on their site as well as mandating registrars of corporate organizations to give allowance for change in marital status in E-dividend form to enable married women with unclaimed dividends to upload necessary documents in support of their new status.&nbsp; &nbsp;&nbsp;&nbsp;In conclusion, claiming unclaimed dividends is a straightforward process that requires individuals to take proactive steps. By verifying their eligibility, gathering necessary documents, and contacting the relevant authorities, individuals can successfully recover their unclaimed dividends. Remember, unclaimed dividends are a significant source of unutilized funds that belong to you. Don't let your hard-earned money go unclaimed. Take the initiative to claim your rightful dividends today and make the most of your investments.&nbsp;&nbsp;John A. Edjeba, Esq,LLM,ACIarb(UK),ACTI,ACIPM,ACIS&nbsp;&nbsp;

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