Seplat Petroleum Development Company on
Friday assured shareholders that its dividend payment must be compliant
with the country’s existing laws and regulations.
In a statement in Lagos by General
Counsel, Dr Mirian Kene Kachikwu, the company said that the company
irrespective of its diverse shareholder base would pay dividends to
diverse shareholders in compliance with the applicable Nigerian laws and
regulations.
It said the company’s final dividend for
the year ended Dec. 31, 2014 to be approved by the shareholders on June
2 would be paid in Naira as applicable to the Nigerian shareholders on
June 10.
The statement said the company, listed
on both Nigerian and London Stock Exchanges, would publish its annual
report to be denominated in both naira and dollars.
“As a company listed on two exchanges in
Lagos and London, we prepare our annual accounts in two currencies, the
Nigerian Naira and the U.S. Dollar,’’ said the statement.
According to the statement, the accounts
were the same as the Dollar denominated version, submitted to the
London Stock Exchange (LSE), having used the ruling exchange rate of the
Naira/Dollar to convert the accounts to Naira.
“The slight confusion must have arisen
when we paid our interim dividend in November 2014. We had given
relevant ‘Nigerian’ shareholders who have domiciliary accounts the
option of receiving their dividends in dollars,’’ it said.
The company said that the act of magnanimity applauded by a number of shareholders, also drew sharp criticism from others
The shareholders recently said in Lagos
that companies listed on the Nigerian Stock Exchange (NSE) and other
exchanges should not insist on the payment of dividend in foreign
currencies.
They said that payment of dividend in
foreign currencies and insistence on domiciliary accounts by Seplat
would increase the spate of unclaimed dividend in the market.
Alhaji Gbadebo Olatokunbo, founding
member, Nigeria Shareholders Solidarity Association, said that companies
were under obligation to pay dividend in Naira whether foreign or cross
border.
Olatokunbo said that shareholders should
not be compelled to open domiciliary accounts because of dividend,
noting that many of them would forfeit such dividends thereby increasing
unclaimed dividend.
“Nigeria currency is naira and not
dollar and shareholders should not be forced to open foreign account for
dividend payment,’’ he said.
Olatokunbo alleged that Seplat’s
insistence on domiciliary account would not work, noting that the
company should convert the dividend declared and pay to shareholders in
Naira.
Boniface Okezie, President, Progressive
Shareholders Association of Nigeria (PSAN), said that companies listed
on the NSE must ensure payment of dividend in the country’s currency.
Okezie said that shareholders must not
be compelled to open domiciliary accounts for the payment of dividend
for companies operating in Nigeria.
“Seplat as a company operating in
Nigeria, owned by Nigerians or even if it is foreign-owned, must not
dollarise our economy,’’ Okezie said.
He, however, called on the Securities
and Exchange Commission (SEC) to look into the issue in the interest and
growth of the market.
(NAN)
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