This is the result of a N90 billion Naira scam.
Uchenna Igwe
Litigator turned fintech innovator. Led Paxful's P2P marketplace to 10M+ users and $500M monthly volume. From shipping law to smart contracts, I work on crypto solutions in emerging markets.
Recently I was conducting some research relating to about 90 billion Naira worth of unclaimed dividends sitting in bank vaults all over Nigeria when something occurred to me: unclaimed dividends are a symptom of a greater malaise in the Nigerian financial system.
So I decided to conduct a simple test of the hypothesis. I sent out a questionnaire on a few social media networks and here is a summary of the few responses I got:
Of course this is not a detailed survey but the responses sharply show the structural challenges faced by operators in the Nigerian financial system. With 50% of respondents replying that they are familiar with financial markets, two key metrics stand out for me:
62.5% of respondents would rather buy land if they had 1 million naira to invest or lose it in 24 hours.
At the very least it takes 3-7 days to do the basic due diligence required to buy a land, as opposed to investing in securities like bonds or a fixed deposit.
Asked who they trust in the financial sector in Nigeria, from a list of options that included SEC and the Nigeria Stock Exchange, 75% replied
Are you kidding me? Nobody!
One bright spot, asked if they consider an investment in shares or other financial assets a wise decision, the respondents were evenly split.
And that is the crux of the matter. If the investors who own 90 billion Naira in dividends (that become property of the companies after 12 years of being declared) receive these sums, will we not see more respect for the financial sector in Nigeria?