Connect with us

Business News

Investors’ Share Consolidation Hits 3.4bn

Published

on

Share

SEC Moves to Tackle Unclaimed Dividends’ Menace

By Tony Obiechina, Abuja, and Udo Onyeka, Lagos

The Securities and Exchange Commission (SEC) announced at the weekend that considerable progress has been made in the implementation of its consolidation of multiple shareholder accounts even as electronic Dividend Mandate Management System (e-DMMS) has so far been consolidated at about 3. 4bn shares.

According to a statement by SEC in Abuja on Sunday both measures were introduced as part of measures to check the growth and possibly eliminate the unclaimed dividend menace in the nation’s capital market.

Acting Director General of the SEC, Ms. Mary Uduk who made the announcement, said a total of 2.7m share accounts have so far been captured under the e-DMMS.

She expressed satisfaction with the regularization of multiple shareholders accounts since it was launched last year, describing investor response as very impressive.

According to her, with the help of the Multiple Subscription Committee, 3.4bn shares have so far been effectively consolidated.

She said, “the committee informed the meeting that the Committee of Heads of Banking Operations had agreed to collaborate with the commission to display banners in (their) banking halls all over the country, sensitizing the public on the regularization of multiple subscriptions of shares.”

See also  Interswitch Launches N23bn Bond Stock Market

Similarly, stockbrokers and registrars are requested “to make available to the Committee on Multiple Subscription Account, on a periodic basis, the number of regularized accounts.”

Company Secretaries of listed companies, she further said, “have also agreed to display similar information on their website and offices.”

SEC is also to help discourage unclaimed dividends from building up from securities of newly-listed companies, just as modalities should be developed for validating shareholders’ registers, such that “registrars are furnished with incomplete information such as missing account numbers.”

Speaking further, the Acting DG noted that the issue of unclaimed dividend is dynamic, given that as the old heap is being cleared by the registrars, new ones are mounting by the day.

“There are plans to develop a standardized data form, which seeks to consolidate registration and access to processes in the capital market by investors”, she added.

The DG also disclosed that the commission was also mandated to urge the Central Bank of Nigeria (CBN) to include e-DMMS charges in its Guideline for Bank Charges.

“This is because the CBN has published charges for the banks; this means that any transactions carried out by any bank, there is an established charge”, she explained.

“The e-dividend charge is not part of the charges from the CBN and so because of that investors are having issues with banks where for instance, they are charged for some transactions that are not listed as bank charges which they do not know.

See also  Land Donated to NALDA not for RUGA-ikonne

“They complained to us and so we decided that we will engage CBN to actually make this part of their charges and so any e-dividend carried out will be charged by the CBN.

“This came up as a result of us stopping the payment of the e-dividend mandate as we were underwriting the cost for the initiative before we mandated investors to pay a token of N150 per mandate.

“We believe the capital market of our dreams can only be achieved through the collaboration of all stakeholders,” Uduk added.

Business News

Naira Redesign Encourages Financial Inclusion, Electronic Transactions – CBN

Published

on

Central Bank of Nigeria CBN
Share

By Tony Obiechina, Abuja

The naira redesign will encourage expanded financial inclusion and other forms of electronic transactions, according to the Central Bank of Nigeria (CBN), yesterday.

CBN Director of Currency Operations, Ahmed Umar, stated this at the 2022 workshop for business editors and members of the Finance Correspondents Association of Nigeria (FICAN) in Port Harcourt yesterday.

Umar, represented by Amina Halidu-Giwa, the Head, Policy Development Division, Currency Operation Department of the bank, said the redesign would encourage many un-banked people to be included in the financial system.

According to him, it will discourage excessive carrying of cash and encourage other electronic means of transactions.

He said that when the un-banked were fully captured in the financial system, it would help form adequate data for effective planning for greater economic growth.

“Naira redesign will also help in reducing cash management expenditures, give visibility and control and will help the bank to know the volume of money in circulation.

“It will also help in fighting counterfeiting and money laundering,” he said.

The director said that contrary to rumours that the CBN would print other denominations apart from the redesigned N1000, N500 and N200, no other denomination would be printed.

See also  Investors Express Mix Reactions on Nigeria’s Banks

Umar also said that the bank was not making money from the printing of the new notes contrary to insinuations.

He said that it was just a continuous process of printing money by the Nigerian Security Printing and Minting Plc, adding that no contract was given to outsiders for the printing.

Fielding questions on why the redesign was so simple, he said “we want to solve a problem and we have limited time to do that.

“Redesigning is about change of colour or size. The ink itself is a security feature,” he said.

Umar said that the redesign of the notes were long overdue noting that the N1000 notes had stayed for 17 years, N500 for 21 years and N200 for 22 years.

Continue Reading

Business News

NDIC Pays 443,949 Failed Banks Depositors N11.83bn

Published

on

Share

By Tony Obiechina, Abuja

The Nigeria Deposit Insurance Corporation (NDIC), yesterday said it has paid a total of N11.83 billion to over 443,949 insured depositors and over N101.37 billion to uninsured depositors of all categories of banks as at June 2022.

Managing director of NDIC, Bello Hassan disclosed this at a workshop organized by the Corporation for financial journalists in Portharcourt yesterday.

The NDIC bank liquidation mandate entails reimbursement of insured and uninsured depositors, creditors, and shareholders of banks in liquidation.

“The liquidation activities, as of June 30, 2022, covered a total of 467 insured financial institutions in liquidation, comprising 49 Deposit Money Banks (DMBs), 367 Microfinance Banks (MFBs), and 51 Primary Mortgage Banks (PMBs) and out of the 49 DMBs in liquidation, the Corporation in September 2022 declared 100 per cent liquidation dividend in 20 of those institutions, meaning that the Corporation has realized enough funds from their assets to fully pay all depositors of the listed banks.

“As of June 30, 2022, the NDIC provided deposit insurance coverage to a total of 981 insured financial institutions.

“The breakdown includes 33 DMBs made up of 24, commercial banks, six Merchant Banks and three Non-Interest Banks (NIBs) plus two Non-Interest windows; 882 Microfinance Banks (MFBs); 34 Primary Mortgage Banks (PMBs); three Payment Service Banks (PSBs) and 29 Mobile Money Operators,” he explained..

See also  Universal Insurance Pays N1.2bn Claims

Three papers were presented on the first day of the workshop namely, “Rising Ponzi Scheme and Investment Scam in Nigeria What We need to know; Understanding the role of premium contribution in an asante funding Deposit Insurance System; and The role of the media in addressing emerging issues in the banking industry”.

Continue Reading

Business News

Naira Redesign: Abuja ACCI Wants Deadline Extended

Published

on

Share

 

The Abuja Chamber of Commerce and Industry (ACCI) has appealed to the Central Bank of Nigeria (CBN) to extend the deadline for the non-continuation of the use of the current currency notes.

The President of ACCI, Dr Al-Mujtaba Abubakar, made the appeal in a statement he issued on Tuesday, in Abuja in reaction to the recent announcement by the CBN on the redesigning of the country’s currency.

According to him, there have been various reactions from experts on the policy and while some experts agree with the CBN’s strategic objectives for the exercise, others differ.

“As a chamber, we recognise the advantages of this policy to include improvement in the integrity of the currency, curbing inflation, the efficiency of its supply and strengthening the strategy to conduct monetary policy, among others.

“However, we are not unaware of the cons of this policy on the national economy, specifically to the Micro Small and Medium Enterprises (MSMEs).

“We would recommend to the apex bank to intensify public awareness campaign on the need for people and businesses to transit cash outside the banking system to the banks,’’ he said.

Abubakar explained that the sensitisation would allay the fears of Nigerians, deepen the buy-in of the citizenry and build national support for the implementation process.

See also  Stock Market Closes on Red, Shedding N4bn

According to him, at the same time, the CBN should extend the deadline for the non-continuation of the use of the old currency notes.

“The chamber would also advise the CBN to provide financial and non-financial interventions (support) to cushion any likely negative impact this policy may have on businesses,’’ he said.

The president also said that the CBN, working with other stakeholders in the financial services eco space, needed to sustain and aggressively pursue and expand financial inclusiveness to cover unbanked segments of the society.

“This can be achieved through new procedures that match the peculiarities of the informal economy.

“The banking establishments also have a duty to harmonise bank charges associated with cash deposits,” Abubakar said.

The News Agency of Nigeria (NAN) recalls that the CBN said that the redesigned Naira notes would be released by Dec. 15, adding that existing ones would cease to be regarded as legal tender by Jan. 31, 2023. (NAN)

Continue Reading

Top Stories

Uncategorized5 hours ago

Plateau PDP Set to Receive Atiku, Governors, National Leaders in Jos

Share Post Views: 6 From Jude Dangwam, Jos The Chairman of the Peoples Democratic Party (PDP) Plateau State Chapter Hon....

POLITICS5 hours ago

NNPP Denies Alliance with PDP

Share Post Views: 9 By Solomon Okoliko, Abuja  The New Nigeria Peoples Party (NNPP) has dissociated itself from the story...

BUSINESS5 hours ago

Factory-resets Infected Devices to Beat Xenomorph Malware, NCC-CSIRT Advises Firms

Share Post Views: 9 A malware, XENOMORPH, that installs Trojan in banking apps on the Android platform to steal login...

Economy6 hours ago

Nigeria’ll Meet OPEC Quota by May 2023 – Sylva

Share Post Views: 11 Minister of State Petroleum Resources, Chief Timipre Sylva, said Nigeria is working to meet the Organisation...

Economy6 hours ago

Give Us Petrol at Official Ex-depot Price, lPMAN Tasks NNPC

Share Post Views: 8 Ejigbo Satellite Depot of the Independent Petroleum Marketers Association of Nigeria (IPMAN) has urged the Nigerian...

economy6 hours ago

Zulum Presents N234.8bn Budget for 2023

Share Post Views: 7 Gov. Babagana Zulum of Borno on Wednesday presented N234.8 billion budget for 2023 fiscal year to...

NEWS6 hours ago

Atiku Promises to Address Insecurity, Others Challenges From Day One, if Elected

Share Post Views: 7 Johnson Eyiangho, Abuja Presidential Candidate of the Peoples Democratic Party (PDP), Atiku Abubakar, has promised to...

DEFENCE1 day ago

Anambra Urges Indigenes to shun IPOB’s Sit-at-home

Share Post Views: 15 Anambra State government has urged its indigenes to shun the sit-at-home protest announced by a faction...

DEFENCE1 day ago

CJN Not Under DSS Investigation – Supreme Court

Share Post Views: 18 The Supreme Court of Nigeria has dismissed insinuation that the Chief Justice of Nigeria (CJN), Justice...

DEFENCE1 day ago

One Feared Dead, Others Missing as Gunmen Attack Abuja

Share Post Views: 20 Gunmen yesterday night attacked a residence close to the hill in the Wuse Zone 5 area...

Copyright © 2021 Daily Asset Limited | Powered by ObajeSoft Inc