The new digital share offering platform, launched by the Nigerian Exchange Group (NGX Group)-NGX Invest, will help to streamline dividend payment and stem the recurring incidence of unclaimed dividends.
NGX Invest is an innovative online platform for the distribution and subscription of public offerings and rights in the Nigerian capital market.
The platform has quickly gained popularity among investors, successfully onboarding a diverse range of participants.
Group Managing Director, Nigerian Exchange Group (NGX Group), Temi Popoola, said one of the standout features of NGX Invest is its contribution to streamlining the dividend distribution process, which aims to reduce the incidence of unclaimed dividends in Nigeria.
According to him, the e-dividend system represents a significant improvement over traditional paper-based method.
“NGX Invest allows investors to designate their preferred account for dividend payments. The system leverages real-time identity verification through NIBSS, transmitting this information directly to the registrar, thereby significantly streamlining the dividend distribution process,” Popoola said.
He explained the potential of the platform’s integration with the Bank Verification Number (BVN) system: noting that the integration of BVN with the designated dividend account opens up possibilities for aggregation and consolidation of dividend payments from multiple shares linked to a single BVN.
