Securities and Exchange Commission has announced that shareholders may now recover unclaimed dividends dating back 12 years, marking a significant extension from previous limitations.

The financial regulator issued the directive on Tuesday, instructing publicly listed companies and share registrars to cease treating dividend payments older than 12 years as legally expired or unrecoverable.

According to SEC Director-General Emomotimi Agama, the new policy reinforces existing provisions in Section 60 of the Finance Act, which requires companies to transfer unclaimed dividends exceeding six years to the government’s Unclaimed Funds Trust Fund. These funds remain available for shareholder claims despite the transfer.

The clarification addresses widespread confusion among market participants, with Agama noting that numerous companies and registrars had incorrectly classified older dividends as statute-barred, despite legal protections established in the Finance Act 2020.

“The Commission is responding to persistent questions regarding the proper handling of these unclaimed funds,” Agama explained in the statement.

Under the updated guidance, companies and registrars must honor legitimate dividend claims stretching back to December 31, 2020, while the trust fund system undergoes final implementation phases.

The SEC has mandated immediate compliance with the new directive and requires regular reporting from affected entities in accordance with existing commission regulations.