Shareholders have condemned the recent decision of the National Assembly to approve legislation that requires the transfer of all unresolved dividends of registrars of the company to accounts administered by the Bag and Securities Commission (SEC), as opened by the Debt Management Office in the Central Bank of Nigeria (CBN).
In a statement issued under the auspices of the Independent Association of Shareholders of Nigeria (ISAN), the shareholders strongly rejected the position of the National Assembly, describing the measure as an unconstitutional transfer of dividends not claimed to the CBN.
They pointed out that this action constitutes a serious violation of the rights of shareholders, a betrayal of investors and a dangerous precedent that threatens the holiness of private property and the integrity of the capital market.
Giving reasons for their rejection, the shareholders emphasized that the unloaded dividends are not government income; They are still legal property of individual investors and their heirs, regardless of the time elapsed. They argued that the attempt to centralize and administer these funds under the control of the SC is equivalent to an indirect expropriation.
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They added that this law would erode the confidence of investors in the capital markets of Nigeria, since both local and international investors require guarantee that their returns will be protected, not confiscated under the appearance of state policy.
The statement, signed jointly by the National Coordinator and Secretary General of Isan, Moses Igbrude and Mr. Eke Chibuzzor, criticized the approval of the law without broad consultations with the shareholders, registrars and participants of the capital market, qualifying it as concern for contempt for participatory governance and due process.
“There are no clear frames on how the SEC intends to manage these funds, what returns will be offered to legitimate owners, or how and when claims will be honored. This is a recipe for bureaucratic poor management and corruption,” reads the statement. He added that instead of simplifying the process to claim unresated dividends, the law introduces additional layers of opacity and complexity, especially for rural and aging investors who already face significant challenges.
The shareholders, therefore, demanded the immediate suspension of the implementation of the law and urged President Bola Ahmed Tinubu not to settle the bill. If signed, they requested their immediate suspension pending judicial review.
They also pointed out that the association is mobilizing legal resources to challenge the law in court, describing it as unconstitutional, unfair and economically harmful.
On the other hand, they proposed that efforts should focus on reforming the process of claims at the level of registration through technology, public education and standardization, not through centralization and appropriation of the State.
The group concluded that the future of Nigeria's investment climate must be built on equity, property protection and inclusive growth, not arbitrary energy catches. They asked all the shareholders to join to reject this injustice.
Nigerian tribe