Unclaimed Dividends Controversy: An Explainer

Concerns followed the Federal Government of Nigeria's decision on December 31, 2021 to securitize unclaimed dividends and dormant account balances of up to six (6) years in the country. In the assented 2020 Finance Bill, the management of unclaimed dividends and dormant account balances was captured as part of many other provisions intended by the Federal Government of Nigeria to mitigate Nigeria's fiscal frailties and economic crunch caused by the emergence of Covid-19. The funds realized will be placed in a trust fund, managed by the Debt Management Office (DMO). The DMO's responsibility also includes payment of claims for such dividends and the accompanying compensation for accrued interest. What is an Unclaimed Dividend and what is this Dormant Account Controversy about? James Akinyemi helps you better understand this and how your money will be affected.