The Independent Shareholders Association of Nigeria has rejected the law mandating the transfer of unclaimed dividends to the Unclaimed Funds Trust Fund account.

In a statement signed by its National Coordinator on Saturday, ISAN described the law as a violation of shareholders’ rights, a betrayal of investor trust, and a dangerous precedent threatening private property and the integrity of Nigeria’s capital market.

Under the Finance Act 2020, dividends of listed companies in Nigeria that remain unclaimed for six years or more, along with dormant account balances in deposit money banks, are to be transferred to the Unclaimed Funds Trust Fund. The fund is overseen by a Governing Council comprising the Minister of Finance, the Debt Management Office, and other stakeholders.

ISAN stated, “Unclaimed dividends are not government revenue. They are the legal property of individual investors and their heirs, regardless of the time elapsed. Centralising these funds under the Securities and Exchange Commission amounts to indirect expropriation and undermines investor confidence.

Local and foreign investors need assurance that their returns are protected, not confiscated under state pretexts.”

The group also criticised the lack of consultation with shareholders, registrars, and capital market participants before the law was passed.

“There is no clear framework for managing the funds, nor clarity on how returns to rightful owners will be handled or how claims will be processed. This risks bureaucratic mismanagement and corruption,” it said.

ISAN called for the suspension of the law’s implementation and a judicial review. “We propose reforming the claims process at the registrar level through technology, education, and standardisation, not centralisation. We urge all shareholders to reject this injustice. Dividends are a right, not a fallback for the government,” the statement added.

The issue resurfaced recently when the Central Bank of Nigeria, represented by Deputy Governor Bala Bello and Finance Minister Wale Edun, appeared before the House of Representatives Joint Committee on Public Accounts and Public Assets. The committee directed the CBN to remit N3.64tn to the Federal Government within 14 days.

In a letter to CBN Governor Olayemi Cardoso, lawmakers demanded that the bank disclose the total value of unclaimed dividends and dormant account balances by June 30, 2025.

“The CBN shall ensure that all unclaimed dividends and dormant balances are transferred to the Unclaimed Funds Trust Fund account within 14 days of receiving this letter,” the statement read.