By Sola Alabadan,

Lagos

The Central Bank of Nigeria (CBN) has directed all deposit money banks to use the e-dividend management system portal developed by the apex bank in collaboration with the Securities and Exchange Commission (SEC) and other relevant stakeholders.

This directive was contained in a circular to all deposit money banks on Monday, signed by CBN Director, Banking and Payments System Department, Dipo Fatokun.

CBN Director, Dipo Fatokun
CBN Director, Dipo Fatokun

He said the CBN and SEC collaborated to develop a common portal for uploading completed e-dividend mandate forms detailing relevant bank account and shareholder information because the current enrolment process for e-dividend is cumbersome and has contributed to low adoption of the e-dividend scheme.

The portal which was launched by SEC on July 29 has been designed   for the use of banks and registrars to digitise the manual process of verification of shareholders’ account details and ensure efficiency in the enrolment process for e-dividend payment.

It was believed that the difficulty encountered by retail investors in claiming their dividends through savings account would be soon be over when SEC collaborated with CBN and the Nigeria Inter-Bank Settlement System (NIBSS) to launch the e-dividend payment platform.

The Director General of SEC, Mounir Gwarzo, had said the platform would address the lingering unclaimed dividend issue in the market.

According to him, the platform, which is part of the 10 year capital market masterplan, would address the issues of not payment of dividends into savings account.

“The era of stale dividend and huge unclaimed dividend in the market will be a thing of the past with the launch of e-dividend payment platform. The commission will conduct intensive training for bankers and registrars on the usage of the new portal,” Gwarzo had stated.

Speaking on the portal, Head, Business Process, NIBSS, Samuel Oluyemi said that the portal was developed under auspices of zero tolerance on unclaimed dividend being pursued by the commission.

According him, investors in the mandate form would supply bank account number; registrars shareholders account number, clearing house account number and bank verification number (BVN).

He said that clients’ dividends would be credited directly once the mandate form was completed appropriately.

While stressing that investors would not be charged for mandate verification, he noted that it had been resolved that dividends could be paid into savings and current accounts.

Oluyemi added that the portal would also accept payment of dividend into dormant accounts, saying, however, that an investor could only withdraw the money after revalidating the account.


Source : Independent