Registrar Industry Growth Challenges in Nigeria

In an interview, Seyi Owoturo, the Registrar, addressed the challenges faced by the registrar industry in Nigeria, which is primarily controlled by four major registrars. He emphasized the necessity of deepening youth participation in the capital market to unlock infrastructure financing.

Owoturo noted that 85-90% of industry activities are dominated by these registrars, but transaction limits and aggressive pricing have led to a price war, commoditizing services. Despite significant commercial paper issuance last year, the registrar business has not translated into major business growth due to limited institutional participation.

He highlighted the importance of technology in transforming shareholder engagement, particularly during the COVID-19 pandemic, which accelerated the shift to virtual and hybrid Annual General Meetings (AGMs). Currently, Nigeria has N200 billion in unclaimed dividends, representing 3.3-5% of total declared dividends.

Owoturo pointed out that the legacy of unclaimed dividends is a significant issue, with many shares purchased decades ago lacking updated records.