Nigeria holds approximately N190 billion in unclaimed dividends as of 2024, representing a massive opportunity for beneficiaries to recover forgotten investments. The recent Investment and Securities Act 2025 has eliminated the arbitrary 12-year statute-barring rule, meaning dividends dating back to December 2020 can still be claimed. This comprehensive guide provides everything Nigerian investors need to navigate the inheritance and recovery process effectively.
Legal framework: probate and letters of administration essentials
Nigeria operates under a plural legal system where inheritance procedures depend on the type of marriage contracted by the deceased. For persons married under the Marriage Act, English law principles apply, ensuring equitable distribution regardless of gender and overriding discriminatory customary practices.
Probate vs. letters of administration
Probate applies when the deceased left a valid will, allowing executors named in the will to administer the estate. The process requires a minimum 14-day waiting period in Lagos State and typically takes 3-5 months to complete. Letters of administration are required when someone dies intestate (without a will) or with an invalid will, requiring at least two administrators and taking 4-6 months on average.
Both processes require estate duty payment of 10% of total estate value, which represents the largest cost component. Additional expenses include legal fees (N300,000-N500,000), administrative costs (N100,000-N200,000), and court fees, bringing total costs to approximately 14-17% of estate value.
Required legal documentation
Essential documents include death certificates, the original will (if available), valid identification for executors/administrators, comprehensive asset inventories, and bank certificates for asset verification. Lagos State has modernized the process with an E-Probate system accessible at probate.lagosjudiciary.gov.ng, enabling electronic filing and faster processing.
Regulatory framework: NGX and CSCS procedures
The Nigerian Stock Exchange (NGX) and Central Securities Clearing System (CSCS) serve as the primary regulatory infrastructure for share inheritance and recovery. Under the Investment and Securities Act 2025, shares may only be inherited through production of probate or letters of administration from the High Court.
CSCS transmission process
The deceased’s account name must be changed to an estate account through a formal transmission process. This requires creating a nomination letter to the MD/CEO, completing biometric capture for enhanced security, and submitting comprehensive documentation including death certificates, legal authorization, and beneficiary identification.
Processing timeline averages 4-8 weeks for complete inheritance claims, with fees varying by registrar (typically N10,000-N50,000 per company plus 7.5% VAT). For joint holdings, shares automatically transfer to surviving joint holders upon presentation of a notarized death certificate.
Digital platform improvements
Recent technological advances include the RegConnect Version 2 platform launched in 2024, a new USSD service (*7270#) for portfolio access, and enhanced mobile applications. The infrastructure now achieves 99.9999% uptime with advanced cybersecurity measures including AI-powered threat detection and blockchain technology.
Step-by-step recovery process for forgotten shares and dividends
Phase 1: Discovery and search (2-4 weeks)
Start with the SEC E-Dividend Portal at sec.gov.ng/non-mandated for immediate, free searches. Try multiple name variations including maiden names, nicknames, and different name orders. The search results show company names, registrars, and account details.
Conduct a CSCS Global Search through any active stockbroker or by visiting CSCS offices in Lagos/Abuja. This comprehensive search costs N5,000-N15,000 and takes 2-3 weeks but provides complete portfolio information across all brokers and registrars.
Phase 2: Documentation and registration (2-6 weeks)
Complete e-dividend mandate forms for each registrar managing shares. Required information includes full name as registered, bank account details, Bank Verification Number (BVN), and contact information. Submit forms through banks (most common), directly to registrars, or through stockbrokers.
The e-Dividend Mandate Management System (e-DMMS) has been revamped in 2024 through SEC collaboration with the Central Bank of Nigeria and NIBSS. Registration remains free under the ongoing SEC initiative.
Phase 3: Payment and transfer (1-4 days)
Once verification is complete, payments are processed within 1-4 days via electronic transfer to registered bank accounts. The system provides SMS alerts and email confirmations for successful transactions.
Recent regulatory updates and their impact
Investment and Securities Act 2025
The most significant change is the elimination of the 12-year statute-barring rule for dividends. The SEC issued a directive in 2024 stopping the treatment of dividends older than 12 years as “statute-barred.” This means dividends dating back to December 31, 2020, can still be claimed while the Unclaimed Funds Trust Fund (UFTF) is being established.
Enhanced powers and penalties
The ISA 2025 expands SEC powers to access telecommunications and internet provider data, compel court testimony, and establish a National Confiscation Wallet for digital assets. Penalties for unauthorized dividend handling include N10 million fines plus N50,000 daily penalties.
Digital asset recognition
Virtual assets are now formally recognized as securities under SEC regulation, with new compliance requirements for cryptocurrency-related inheritance matters through Virtual Asset Service Providers (VASPs) and Digital Asset Operators (DAOPs).
Documentation requirements and processes
Core inheritance documentation
For probate cases: Original will, death certificate, executor’s declaration on oath, bank certificate, identity documents, asset inventory, and passport photographs. For letters of administration: Application letter, declaration as to next of kin, administration bond, bank certificate endorsed by financial institutions, and proof of property ownership within state jurisdiction.
Share-specific requirements
Include share certificates from companies where the deceased held shares, company register endorsements confirming shareholdings, dividend payment records, and share transfer forms for post-grant execution. For market values below N100,000, simplified documentation processes apply.
Practical implementation strategies
Working with intermediaries
Select active stockbrokers verified through the NGX dealing member directory. Major services include CSCS account management, global search services, e-dividend form processing, and portfolio management. Stockbroker fees typically range from 0.5-1% of portfolio value.
Key registrars include First Registrars Nigeria Limited, Coronation Registrars, Greenwich Registrars, and Meristem Registrars. They handle dividend payment processing, share transfers, certificate verification, and e-dividend mandate processing with timelines of 1-4 weeks depending on the service.
Common challenges and solutions
Name mismatches between registered names and current identification can be resolved through sworn affidavits and marriage certificates. Lost share certificates don’t invalidate ownership – conduct CSCS searches for electronic records. Inactive stockbrokers can be addressed by checking with CSCS for transferred records and approaching active brokers for assistance.
Foreign resident claimants can use notarized documents from Nigerian consulates, appoint local representatives with Power of Attorney, and utilize electronic submission methods.
Timeline and cost expectations
Complete process timeline
Discovery phase: 2-4 weeks including SEC portal searches, CSCS global searches, and stockbroker consultations. Documentation phase: 2-6 weeks for e-mandate completion, bank processing, and registrar verification. Payment phase: 1-4 days after successful verification.
Inheritance cases require 6-12 months for court processes plus 4-8 weeks for share transmission, totaling 8-14 months for complete resolution.
Comprehensive cost breakdown
Direct recovery costs include free SEC portal searches, N5,000-N15,000 for CSCS global searches, and usually free e-dividend registration. Inheritance process costs range from N1,400,000-N1,700,000 for a typical N10 million estate, including N1,000,000 estate duty (10%), N300,000-N500,000 legal fees, and N100,000-N200,000 administrative costs.
Professional service costs include 0.5-1% of portfolio value for stockbroker services, N300,000-N1,000,000 for legal services in complex estates, and N100,000-N300,000 for accounting and valuation services.
Alternative dispute resolution mechanisms
Investments and Securities Tribunal (IST)
The IST has exclusive jurisdiction over capital market disputes with fast-track resolution typically under two years. The tribunal handles SEC decisions, disputes between operators and clients, registrar service issues, and dividend payment disputes. Filing involves completing prescribed forms, paying fees, and submitting supporting documents.
Mediation services
The Lagos Multi-Door Courthouse and other ADR centers across Nigeria offer voluntary mediation with neutral mediators, confidential proceedings, and binding settlement agreements. The SEC Complaints Portal provides online complaint submission with investigation and regulatory enforcement capabilities.
Digital tools and platforms
Primary platforms
SEC E-Dividend Portal (sec.gov.ng/non-mandated) offers name search functionality, registrar identification, company listings, and form downloads. The NIBSS Self-Service Portal (docuhub3.nibss-plc.com.ng/edmms/self-service) provides direct e-dividend registration with real-time processing and SMS confirmations.
The CSCS Mobile App includes portfolio viewing, share search functionality, investment tracking, and transaction history. Major registrar websites like First Registrars (firstregistrarsnigeria.com) offer form downloads, USSD services (*5075#), online portfolio access, and SMS alerts for N1,000 annually.
Recommended action plan
Immediate steps
- Conduct comprehensive searches using SEC portal, CSCS global search, and stockbroker consultations
- Register for e-dividend services through available digital platforms
- Gather essential documentation including identification, bank details, and relationship proof
- Engage qualified intermediaries for complex cases requiring legal or professional assistance
Success factors
Persistence in conducting multiple search attempts with name variations, complete documentation with accurate paperwork, professional help through qualified intermediaries, patience for adequate processing time, and regular communication with all parties involved.
Conclusion
The Nigerian capital market offers unprecedented opportunities for recovering forgotten shares and unclaimed dividends, particularly following the 2025 regulatory reforms. With N190 billion in unclaimed dividends available and the elimination of arbitrary time limits, beneficiaries have strong prospects for successful recovery. The key to success lies in understanding the legal framework, utilizing available digital platforms, maintaining complete documentation, and working with credible intermediaries. While the process requires patience and persistence, the substantial potential returns make it worthwhile for Nigerian investors to pursue these forgotten assets systematically.