Seplat Clarifies Dividend Policy for Nigerian Shareholders

Logo of Seplat Petroleum Development Company Plc

Seplat Petroleum Development Company Plc has clarified its dividend payment policy to Nigerian shareholders, following reports that the company was insisting on paying its Nigerian shareholders in dollars.

The company, which is listed on the London and Nigerian stock exchanges, described the seeming confusion as a “simple misunderstanding” in a statement signed by its General Counsel, Dr. Mirian Kene Kachikwu,

According to Kachikwu, “We are constrained to publicly clarify our dividend payment policy and set the records straight against the backdrop of recent media reports, obviously on the ground of a simple misunderstanding.

“Seplat has a diverse shareholder base and we pay dividends to our diverse shareholders in compliance with applicable Nigerian laws and regulations. For the avoidance of doubt, our final dividend for the full year 2014, following shareholder approval, on June 2nd, 2015, will be paid in naira, as applicable, to our Nigerian shareholders on June 10th 2015.”

Kachikwu pointed out that the misunderstanding had arisen due to what she described as an “act of magnanimity on the part of Seplat, which was applauded by shareholders, but is now being criticised.”

“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 US dollars. Obviously, this act of magnanimity, which was applauded by a number of shareholders, also drew sharp criticism from others.

“As a Company listed on two exchanges in Lagos and London, we prepare our annual accounts in two currencies, the naira and the US dollar. Our Nigerian accounts for the full year 2014, submitted to the Nigerian Stock Exchange (NSE) was denominated in the naira. These accounts are exactly 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,” she added.