IT has been revealed that a huge percentage of investors in the Nigerian capital market were yet to complete registration for e-dividend.
Director-General of the Securities and Exchange Commission of Nigeria (SEC), Mounir Gwarzo, revealed on Wednesday that only 6,000 e-registration has been done since the inception last year, as against projections of one million e-dividend registrations.
“We are still having issues in respect of e-dividend registration. The report we got recently was very discouraging. Only about 6,000 Nigerians have registered for the e-dividend,” he said, while observing that there were issues with Registrars and Banks as they have not come to an agreement on the modalities,” he said.
Gwarzo, while briefing the press on the key developments and deliberations made during the Second Quarter Capital Market Committee (CMC) Meeting, explained that SEC was working closely with the banks and registrars nationwide, to boost the e-dividend registration process in the country.
To tackle the issue, the SEC DG explained that a meeting has been held with all the banks representatives and registrars where it was agreed that both party appoint e-dividend Champions that would help drive the process effectively.
Gwarzo further explained that on their part of the Nigerian Inter-Bank Settlement Systems (NIBSS), commitment has been made to assist both party in clarifications when required for the e-dividend registration.
Speaking further Mr Gwarzo said by June 30th, 2017 no registrar will issue dividend warrant again in the country,signalling the era of e-dividend. In view of this, he announced that SEC will underwrite the cost of e-dividend registration till 31st December,2016.
Mr Gwarzo, however, called for maximum suppport from the media in the area of awareness/sensitization of the pubic on the gains and essence of the e-dividend registration.