Home » House, Latest Politics, Legislature » N126bn unclaimed dividends: Reps begins investigation

N126bn unclaimed dividends: Reps begins investigation

By Temitope Ponle

The House of Representatives has directed its Committee on Capital Market and Institutions to investigate unclaimed share dividends in the capital market, valued at over N126.03 billion.

This followed the unanimous adoption of a motion moved by Rep. Babangida Ibrahim at the plenary, on Wednesday.

The motion was tagged “Need to Investigate the Rising Value of Unclaimed Dividends, Unremitted Withholding Tax on Dividends and their Attendant Effects on the Nation’s Economy.”

Ibrahim said unclaimed dividends had continued to increase over the years, thus increasing the unremitted withholding tax on dividends in the country.

The lawmaker said that the value of unclaimed dividends rose from N5.1 billion to N103.1 billion between 2002 and Nov. 2016, compared with the value of N2.09 billion in 1999.

He added that the value of unclaimed dividends as of March 2019 stood at N126.03 billion, almost three years after the 8th House’s intervention.

“The House is aware of the mechanisms put in place to address the issue of rising value of unclaimed dividends.

“These include adoption of electronic dividend payment method, dematerialisation of share certificates, acceptance of dividend warrants in both savings and current accounts.

“Others were the need for consolidation of accounts by the Central Securities Clearing System and Registrars and the need to resuscitate publication of names of owners of unclaimed dividends by companies, all of which had been applied with no significant positive outcome,” he said.

Ibrahim listed the implications of large value of unclaimed dividends on the economic development of Nigeria to include adverse investors’ confidence, decrease in availability of long-term capital for economic development and the likely volatility in the regulation of the capital market.

The House, therefore, mandated the committee to investigate the rising value of unclaimed dividends and unremitted withholding tax on dividend and their attendant effects on the nation’s economy.

It directed the committee to report back within six weeks for further legislative action. (NAN)

Related Posts

EasyFreeAds Blog News Facebook Twitter Myspace Friendfeed Technorati del.icio.us Digg Google Yahoo Buzz StumbleUpon

Short URL: http://newnigerianpolitics.com/?p=53276

Posted by on Nov 7 2019. Filed under House, Latest Politics, Legislature. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

Leave a Reply

Headlines

NNP BREAKING NEWS:

Categories

Browse National Politics

Featuring Top 5/866 of National Politics

Browse Corruption Politics

Featuring Top 3/141 of Corruption Politics

fvevveee

Advertisement

Browse NNP Columnists

Featuring Top 10/1336 of NNP Columnists

Browse Books & Magazines

Featuring Top 4/15 of Books & Magazines

Alleged corruption: EFCC replies Fayose

--

FEATURED VIDEOS

SEARCH POSTS BY DAY & MONTH

SunMonTueWedThuFriSat
12
34567
8
9
1011
12
13141516
17181920212223
24252627282930

© 2019 New Nigerian Politics. All Rights Reserved. Log in - Designed by Gabfire Themes