DIVIDENDS REGULATION IN NIGERIA: AN EXAMINATION OF THE SECURITIES AND EXCHANGE COMMISSION’S OVERSIGHT AND IMPACTS ON LISTED COMPANIES

Abstract

Dividend policy occupies a central position in corporate finance, investor protection, and capital market regulation. Against this background, the study interrogates the legislative and regulatory framework governing dividend declaration and distribution, situating it within broader debates on transparency, solvency, and shareholder rights. The aim of the study is to critically examine how the SEC’s oversight function and evolving statutory reforms address these challenges, with a view to strengthening investor protection and enhancing confidence in Nigeria’s capital market. Methodologically, the research adopts a doctrinal approach, analysing relevant statutes, SEC rules and circulars, NGX disclosure practices, and comparative perspectives from jurisdictions such as the United Kingdom and Ghana. The findings reveal that while Nigeria’s framework provides clear rules on dividend declaration, solvency requirements, and disclosure obligations, practical implementation remains problematic. Weak enforcement, and other challenges undermine the system’s effectiveness. The ISA 2025 represents a major reform, expanding SEC’s enforcement powers and introducing mechanisms to safeguard investors, but its success depends on detailed subsidiary regulations and consistent application. The study concludes that Nigeria’s dividend regulation is at a critical juncture: reforms have laid a strong foundation, but clarity and enforcement are essential to translate statutory provisions into real investor protection. Accordingly, it recommends the issuance of comprehensive SEC guidelines on unclaimed dividends among others