One Investor, One Identity: Tackling the Challenge of Unclaimed Dividends
The growing volume of unclaimed dividends in Nigeria’s capital market is not merely a regulatory or administrative concern; it is an investor-awareness issue that requires urgent public sensitisation.
One significant factor complicating the tracking and recovery of unclaimed dividends is the existence of multiple Central Securities Clearing System (CSCS) account numbers and Clearing House Numbers (CHNs) held by individual investors. Over the years, investors may have accumulated different securities accounts through various stockbrokers, public offers, rights issues, transfers, inheritances, or changes in brokerage relationships.
While these accounts may have been created legitimately, fragmented investor identities can make it considerably more difficult to establish a complete picture of an individual’s shareholdings and outstanding dividends.
For investors, the consequence is straightforward: money that belongs to them can remain unidentified, unclaimed or difficult to trace.
The most practical way forward is greater investor education combined with the consolidation and harmonisation of investors’ securities records.
Rather than attempting to trace dividends security by security, broker by broker, or account by account, investors should be encouraged to establish a single, accurate and consolidated investment profile through the appropriate capital-market channels.
Investors should know their CSCS account details, CHN, shareholder identification information, bank details and dividend registration status, and ensure that these records are properly updated and linked where applicable.
The objective should be simple: one investor identity, a clear record of shareholdings and an efficient pathway to every dividend due.
Investors and prospective shareholders should not wait until they hear about an unclaimed-dividend initiative before checking their records. Regular verification of investment accounts and dividend mandates should become part of every investor’s financial routine.
Investors who have changed brokers, participated in several public offers, inherited shares, changed names, relocated, or maintained multiple CSCS/CHN records should be particularly proactive in reconciling their investment information.
The message to the investing public is therefore clear: know what you own, know where it is registered, keep your investor information current, and actively verify whether dividends are outstanding.
For the market as a whole, simplifying investor identification and encouraging the consolidation of fragmented records would significantly improve the visibility of unclaimed dividends.
For individual investors, the easiest approach is to start with a comprehensive review of their existing CSCS/CHN records and seek assistance from their stockbroker, registrar or other authorised market intermediary where records are fragmented or unclear.
A more coordinated investor-identification framework would not only help recover dormant dividends; it would also strengthen market transparency, improve investor confidence and deepen participation in the capital market.
Unclaimed dividends should not become permanently lost dividends. With better investor awareness, accurate records, and easier consolidation of multiple securities identities, investors can take a more active role in finding and claiming the money that is rightfully theirs.
Overall, multiple CSCS and CHN Numbers complicate dividend recovery; investors need a simpler path to track and claim their money. #One Investor, One Identity: Tackling the Challenge of Unclaimed Dividends# Unclaimed Dividends Law Threatens Investors Confidence, Financial Inclusion
