Shareholders under the aegis of the Independent Shareholders Association of Nigeria (ISAN) has issued a strong condemnation of the recently passed legislation mandating the transfer of all unclaimed dividends from company registrars to accounts managed by the Securities and Exchange Commission (SEC), as domiciled with the Central Bank of Nigeria (CBN) through the Debt Management Office (DMO).
ISAN described the legislation as not only unconstitutional but also a direct assault on the property rights of Nigerian investors. The association warned that the law sets a dangerous precedent, erodes confidence in the capital market, and threatens to reverse years of progress toward investor protection and market development.
According to the group, unclaimed dividends remain the legal property of shareholders or their heirs, regardless of the length of time they remain unclaimed. ISAN said any attempt to transfer these funds to a government-controlled account constitutes an unlawful seizure of private assets under the guise of regulation.
“This law amounts to an indirect expropriation of shareholders’ entitlements and a breach of constitutional protections on private property,” said Comrade Moses Igbrude, National Coordinator of ISAN. “Unclaimed dividends are not government revenue and should not be treated as such. What the legislature has done is effectively strip millions of retail investors — many of them elderly or residing in rural areas — of their legitimate entitlements.”
ISAN also criticised the National Assembly for failing to carry out adequate stakeholder consultation before passing the law. The group noted that critical voices such as minority shareholders, registrars, market operators, and civil society actors were excluded from the deliberation process.
“This lack of transparency and consultation reflects a disturbing pattern of legislative overreach and disregard for inclusive governance. Laws that affect private capital and investor livelihoods should not be made behind closed doors,” said Mr. Eke Chibuzor, General Secretary of ISAN.
The association raised concerns about the lack of clarity surrounding the operational framework for managing the unclaimed dividends once transferred to the SEC. According to ISAN, there are no published details on how the funds will be safeguarded, invested, audited, or returned to their rightful owners.
“We fear this law will create a black hole of mismanagement. Without a clear and enforceable framework, these funds could be lost to bureaucracy, inefficiency, and potential corruption. The current system may be imperfect, but the answer is reform — not confiscation,” ISAN warned.
The association also noted that the move runs counter to Nigeria’s financial inclusion goals. By centralising the unclaimed dividend process at a federal level, the legislation introduces new layers of bureaucracy that are likely to discourage claims, particularly from vulnerable groups such as the elderly, low-income earners, and those without digital access.
In light of these concerns, ISAN is calling on President Bola Ahmed Tinubu to withhold assent to the legislation. If the President has already signed it into law, the group is demanding an immediate suspension of its implementation and a comprehensive judicial review to test its constitutionality.
ISAN revealed it is already mobilising legal and civil society resources to challenge the legislation in court, describing it as economically regressive, ethically questionable, and constitutionally flawed.
As an alternative, ISAN proposed a more inclusive and technologically driven reform agenda. The association called for the modernization of registrar processes, increased public awareness campaigns, the adoption of unified dividend claim portals, and the harmonisation of investor data across financial platforms to help reduce unclaimed dividends.
“We are not opposed to reform,” ISAN clarified. “What we are opposed to is state overreach and the forced transfer of private property without due process or consultation. Our position is anchored on fairness, transparency, and respect for the rule of law.”
ISAN ended the statement with a clarion call to all Nigerian shareholders and investment advocacy groups to rise in defense of their rights.
“Your dividends are your right — not a fallback fund for the government,” the group stated. “The future of Nigeria’s capital market must rest on principles of trust, fairness, and property protection — not arbitrary confiscation or regulatory authoritarianism.”
The association reaffirmed its commitment to safeguarding shareholder interests, promoting responsible market regulation, and defending the integrity of the Nigerian financial system.
