Check, claim, cash in: recovering unclaimed dividends in Nigeria

Imagine discovering a company owes you money, sitting untouched for years.

That’s exactly what unclaimed dividends are. Across Nigeria, billions of naira in dividends remain untouched.

The good news? Recovering it is actually straightforward.

Let’s break it down.

What exactly is a dividend?

A dividend is the portion of a company’s profit shared with shareholders. If you own shares in a company and it declares a dividend, you receive a payment based on the number of shares you hold.

Companies usually pay dividends:

• Final dividend (once a year), which represents the final profit-sharing decision for the year.

• Interim dividend (multiple times), which are declared and paid during the financial year, before the final, full-year profit is determined based on quarterly or semi-annual financial performance.

What is an unclaimed dividend?

An unclaimed dividend is money declared by a company for shareholders but never collected.

This can happen for several reasons:

• The shareholder moved without updating the records.

• Bank account details changed

• No e-dividend registration

• Shares were inherited, but the family didn’t know.

• Share certificates were lost

• The shareholder passed away

Sometimes, people simply forget they ever bought the shares.

How to check if you have unclaimed dividends

The easiest way is through the U-eDIV portal provided by the Securities and Exchange Commission of Nigeria.

Steps:

1. Visit the SEC portal.

2. Search for your name.

3. Check the companies linked to you.

4. Take note of the registrar managing the shares.

The portal typically shows:

• The company name

• The registrar

• The number of shares

• Your investment account number

One small search could uncover money you didn’t know existed.

Step-by-step: how to recover your unclaimed dividend

1. Find your registrar: Once your name appears on the portal, note the registrar managing the shares.

Examples include: Africa Prudential, Coronation Registrars, First Registrars, CardinalStone Registrars

Registrars maintain shareholder records and process dividend payments.

2. Download the E-Dividend mandate form: Visit the registrar’s website or the SEC portal and download the e-dividend mandate form.

This form allows dividends to be paid directly into your bank account.

You will typically fill in: Full name, bank account details, BVN, address, and shareholder account number.

3. Verify it at your bank: Take the completed form to your bank.

The bank will:

• Confirm your identity

• Validate your BVN

• Stamp and sign the document

This helps prevent fraud.

4. Submit to the registrar: After bank confirmation, submit the form to the registrar.

Once processed, your dividends are paid directly into your account.

Outstanding dividends are often paid within a few days to a few weeks, depending on the registrar. After registration, future dividends will be credited automatically to your bank account.

Another option: use a stockbroker

If the process feels confusing, a stockbroker can handle everything.

A broker can:

• Conduct a global search across registrars

• Consolidate all your shareholdings

• Recover old dividends

• Help digitize old paper share certificates

This is especially useful if you invested many years ago.

Documents you may need

Most registrars require:

• Valid ID card

• Passport photograph

• Completed e-dividend form

• Bank verification

• Share certificate (if available)

If the shares belonged to a deceased relative, additional documents may be required.

Why Nigeria has so many unclaimed dividends

Nigeria has hundreds of billions of naira in unclaimed dividends.

The major reasons include:

• Investors failing to update their records.

• Old paper share certificates in the 2000s.

• Company mergers and name changes.

• Lack of e-dividend registration.

Many investors from Nigeria’s banking consolidation era also lost track of their investments over time.

What happens to dividends that stay unclaimed?

Under the Finance Act 2020, dividends that remain unclaimed for six years may be transferred to the Unclaimed Funds Trust Fund (UFTF), managed by the Debt Management Office Nigeria and the Securities and Exchange Commission Nigeria.

The important thing to know is that the money is not forfeited. It is held in trust, meaning shareholders can still claim it by providing proof of ownership through the registrar or the SEC.

Older rules once treated dividends as statute-barred after 12 years, but current frameworks still allow many of these funds to remain claimable.

Final thought

Unclaimed dividends are one of the easiest financial wins.

No trading. No risk.

Just money that already belongs to you.

Sometimes, the only thing standing between you and that money is a five-minute search.