The federal Government (FG) of Nigeria, in its quest for ‘easy’ funds to finance excess deficit, had announced a move to borrow ₦895 billion from ‘unclaimed dividends,’ and dormant account balances.
However, contrary reactions appeared to have slowed down the intention. The latter was argued by Shareholders under the auspices of Independent Shareholders Association of Nigeria (ISAN), and New Dimension Shareholders Association, that since FG has not been a good borrower,and cannot be trusted to curb corruption and wastages in various agency.
Patrick Ajudua, the president of New Dimension Association stated that borrowing or setting up a trust fund for unclaimed dividends would create opportunity for wasteful spending. He insisted that dividend should go back to the companies.
Ajudua said, “For us shareholders, it is unfortunate that the government has decided to annex money that does not belong to them to cover their hidden intentions”.
He cried out that government has remained indifferent to the challenges of listed firms and the capital market that birthed the dividends over the years.
Meanwhile, the Publicity Secretary of ISAN, Moses Igbrude, said “Government that is suppose to protect it’s citizen wants to rob shareholders through the unclaimed dividends trust funds,the same government that wants investors to invest and grow the economy,is the same government that want to take away the proceeds of the investments just because shareholders did not claim it on time.”
He added, “This is unacceptable, and inhumanity to man,this would definitely erode investors confidence and militate against investment in Nigeria,we want those behind this proposal to have a rethink otherwise,they will be in for a long legal battle with the shareholders.
“We are appealing to the National Assembly to reject and expunge in its entirety that section of the Bill, because from all intention and purpose the Unclaimed Dividend Trust Fund is designed to rob innocent Nigerians of their hard earned money.”
Ijeoma Njoku reporting, Obinwannem News
