Launch Of The e-Dividend Payment System
Jun 16, 2008 - We are witnessing another milestone in the history of the Security and Exchange Commission in particular and the country in general as we gather here for the launch of the e-Dividend payment system in the Nigerian capital market. I congratulate the Director-General, Mr. Musa Al-Faki and his very resourceful management team and staff on this watershed phase in the activities of SEC.
This is indeed a revolutionary move which I am very sure every shareholder will welcome with a huge sigh of relief. The tale of woes by many investors about missing or unclaimed dividend warrants and in some cases their delayed posting effectively ends today. Indeed, the interesting moment of this e-Dividend innovation is the blow the SEC will strike at the scandalous recent story of unclaimed dividends of N19billion, the source of corruption allegations in the industry.
As the state that plays host to the SEC, Lagos State is poised to benefit in no small measure from the introduction of this novel system by the apex regulator of the Nigerian capital market. The Nigerian Stock Exchange which is located in the state has grown its customer base from a mere 2 million shareholders in 2000 to over 6 million shareholders in 2008.
Shareholders whose accounts will henceforth be credited twenty-four hours, (24hrs), after declaration of dividends, through this system, will now be able to utilize their investments whenever they so wish. These activities will help to uplift the face of business in Lagos apart from removing this investment constraint and improving the market for more investments. With this, I am happy the SEC has taken corporate governance a notch higher as accountability and due process will now be the watchwords in the industry. It will also boost the image and stocks of the NSE which is now quoted in major markets of the world.
This SEC initiative is in consonance with the due process plank of the Federal Government, which many institutions and systems are embracing with sincerity.
Once again, we commend the efforts of the leadership of this dynamic institution, which is headed by Mr. Musa Al-Faki and his team. The speed with which Finance Minister, Alhaji Shamsudeen Usman approved this system shows the diligence and dedication you had put into its realization.
It is my pleasure to launch this e-Dividend payment system to the glory of God, to the continued prosperity of Nigerian shareholders and to the general welfare of the Nigerian people, particularly those in Lagos State.
I thank you all for listening.
“Eko O ni baje O!”
Mr. Babatunde Raji Fashola, (SAN)
Governor of Lagos State