For the first time in the history of any capital Market in Africa, investors in the Nigerian Capital market are now to get dividend payment within 24 hours through the e-Dividend Payment Platform.
Mounir Gwarzo Director General, Securities and Exchange Commission (SEC) made this disclosure at the e-Dividend Sensitization Town Hall Meeting in Lagos, Thursday.
According to him, the proposed system will automatically allow dividends to be credited directly into shareholders accounts within 24 hours of payment by the company.
Gwarzo stated that this was one of the initiatives being implemented by the Commission as part of its 10 year Capital Market Master Plan to encourage Retail investors to return to the market and thereby deepen the market.
According to him “one of our strategies is to target the retail investor, the only way we can deepen the market and ensure that the market is within our own grip is to ensure that the retail investor comes into the market. it is only the domestic investor that no matter the condition of the market, will pay us, what we have been experiencing in the marched is the dominance of the foreign investors where anytime they want to move out of the market they get out and anything the want to come in they do so, seeing what happens in the market, we decided that the best thing is to get the retail investor and our approach is not to go to them and be telling them to come back.
“But our approach is to identify the issues why they are not in the market and deal with such issues. If you meet all retail investor, he is going to complain about not getting dividend. So how do we address some of these issues and that brought about the issue of Road Show where we meet the retail investors’ one on one and tell them why they need to key into the e-dividend.it has been quite successful so far.
“We have achieved something that is very unique, even South Africa they have t+5, where when you do tranactio0ns you cannot get payment until five days. but with this system, we are going to achieve t+1 settlement system.