After strong indications emerged last week that the Federal Government has finally taken over management of the Unclaimed Dividend Trust Fund (UDTF), Nigerian shareholders have vowed to take the matter to court in search of redress.
This is coming after the Securities and Exchange (SEC) admitted that it now manages the fund alongside the Debt Management Office (DMO), contrary to Nigerian shareholders’ position on the matter. Stakeholders’ fears on the matter began to grow after the Federal Government decided to securitise unclaimed dividends and inactive account balances in the country financial system for up to six years.
This was further compounded with government’s decision to include the management dormant account balances in the assented 2020 Finance Bill, along with many other provisions intended to mitigate Nigeria’s fiscal frailties and economic crunch caused by the COVID-19 pandemic.
These developments however confirmed Nigerian shareholders’ fears and opposition in 2020 to the establishment of UDTF proposed to address the growing rate of unclaimed dividend currently estimated at N200 billion. They had then argued that the SEC was colluding with the government to control the fund for their use which may eventually end up being misappropriated.
