Ndubuisi Orji, Abuja
The House of Representatives has resolved to probe and estimated N126 billion unclaimed and unremitted withholding taxes on the dividends.
Consequently, the House has mandated its Committee on Capital Market and Institutions to undertake the investigation and report back to it within six weeks for further legislative actions.
This followed the adoption of a motion on the “need to Investigate the rising value of unclaimed dividends, unremitted withholding tax on dividends and their attendant effects on the nation’s economy,” sponsored by Babangida Ibrahim, at yesterday’s plenary.
Ibrahim in his motion decried the increase of unclaimed dividends, and by extension unremitted withholding tax on dividends in the country, noting that it is healthy for the country.
According to him, between 1999 to March this year, unclaimed dividends has risen from N2.09billion to N126.03 billion.
The lawmaker added that all mechanism , like doption of electronic dividend payment method, dematerialisation of share certificates, acceptance of dividend warrants in both savings and current accounts, need for consolidation of accounts by the Central Securities Clearing System (CSCS) and Registrars among others, put in place to address the issue have recorded any positive result. Ibrahim, while calling for the intervention of the House noted that “ the implications of large value of unclaimed dividends on the economic development of Nigeria include …adverse investor’ confidence, decrease in availability of long-term capital for economic development and the likely volatility in the regulation of the capital market.”