Unclaimed dividends in Nigeria’s financial market have risen to N215 billion as of March this year, the Securities and Exchange Commission (SEC) hinted on Thursday.
Besides, the SEC has revealed plans to encourage municipal bonds for the local government as part of its drives to attract local councils to the capital market.
The Director General of SEC, Dr Emomotimi Agama, disclosed this to newsmen after the second 2024 Capital Market Committee (CMC) meeting in Lagos.
The CMC meeting marks the beginning of a new era under Agama who assumed office in May after his appointment as the DG.
Addressing capital market correspondents, Agama pointed out that mechanisms have been put in place to reduce the rising unclaimed dividends in the financial market.
“So, as of March, it’s N215bn. What we desire to do is to make sure we bring that down. We are putting up mechanisms to ensure that happens. What we have done in order to enhance the process is that we now have a new portal that allows what we call self-service,” he said.
He said the SEC under his leadership is pushing to encourage listing of more companies into the capital market.
Agama said municipal bonds will also be encouraged for the councils ahead of the takeoff of the LG autonomy.
This, he said, will ensure discipline and governance for the allocation received by the LGs and also galvanise economic emancipation for the grassroots.
“We want to encourage municipal bonds, so that the local government will understand the use of the capital market in the development of the local government.
“We are creating a desk at the SEC to deal with that specifically. Now that they are going to have direct funding, the only way to progress those developments is via the capital market, issuance of securities to be able to develop the local governments,” Agama said.
The SEC DG also highlighted significant developments in the Nigerian capital market for 2024 o include the approval of nine new issuances totaling ₦1.228 trillion, reflecting increased confidence in the market and a growth in the Net Asset Value (NAV) of Registered Mutual Funds by 111.08% to ₦3.335 trillion, indicating strong and sustainable growth.
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