The Securities and Exchange Commission (SEC) is urging investors to use its updated e-dividend portal to secure their dividends and address the growing issue of unclaimed funds. However, the portal, redesigned to be more user-friendly and secure, allows investors to efficiently manage their dividend payments.
Emphasis on Security and Accessibility
The SEC’s Director General, Emomotimi Agama, stressed the importance of using the official SEC website or the Nigerian Interbank Settlement System (NIBSS) platform to access the e-dividend portal. “If you access that portal from the SEC website, it is genuine,” Agama stated, highlighting the portal’s robust cybersecurity measures. Moreover, this recommendation comes amid concerns over potential cyber threats targeting financial platforms.
In addition, Agama also warned investors against using unofficial websites, which could be vulnerable to cloning or phishing attempts. “Go directly to the SEC website, which is fully protected, and access it from there,” he advised, emphasizing that the official platforms are the only secure means to manage dividends.
Addressing concerns about the use of Bank Verification Numbers (BVN) on the platform, Agama clarified that the BVN is crucial for confirming investor identities. “We need to verify that you are who you say you are,” he explained. This measure helps prevent fraud and ensures that only rightful investors can claim their dividends.
Combating Unclaimed Dividends
Furthermore, the SEC’s push to enhance its e-dividend portal is part of a broader effort to reduce the staggering N215 billion in unclaimed dividends in the Nigerian capital market. “The purpose of investing in the capital market is to receive returns,” Agama noted. However, he highlighted that the SEC is committed to overhauling the dividend management process to ensure more efficient payouts.
Recently, the Senate Committee on Capital Markets conducted a hearing on the unclaimed dividends issue, with full participation from the SEC. “We are focused on using technology to streamline the dividend payment process,” Agama stated, underscoring the Commission’s proactive stance on resolving the issue.
To further tackle the problem, the SEC is collaborating with the Committee for Identity Management for the Capital Market. Moreover, the aim is to leverage technology for accurate investor identification and to simplify the dividend collection process. “Our efforts are focused on ensuring that people are properly identified and can access their dividends easily,” Agama added.
Future Steps and Investor Education
The launch of the revamped e-Dividend Mandate Management System portal is a significant step in the SEC’s strategy to curb unclaimed dividends. Also, the new portal is designed to improve the investor experience by providing a straightforward, secure method for managing dividend payments. “The NIBSS Self-Service link on the SEC website is aimed at improving investor experience,” the SEC noted in a statement, highlighting its commitment to investor satisfaction and financial inclusion.
Looking ahead, the SEC plans to intensify its educational initiatives to help investors understand the process of claiming dividends. By combining technological upgrades with increased investor education, the Commission aims to eliminate the issue of unclaimed dividends. “We are committed to using technology, education, and persuasion to help investors understand the processes involved in claiming dividends,” Agama reiterated.
The SEC’s ongoing efforts to enhance the e-dividend portal reflect its dedication to safeguarding investor interests and promoting a transparent, efficient capital market. Moreover, as investors are encouraged to secure their dividends through the official channels, the Commission continues to work toward a more accessible and equitable financial system for all.
Source: Punch
