Revenue crisis: FG takes N100bn from unclaimed dividends against shareholders, firms’ protest

Billions of naira lying idle in dormant accounts and unclaimed dividends have become the latest funding source for the Federal Government, Business Hallmark can report.

It was gathered at the weekend that the Federal Government had successfully borrowed the sum of N100 billion from the pool of unclaimed dividends and dormant accounts recently appropriated by the Central Bank of Nigeria (CBN), and is in the final stage of securing another N795billion from the idle pool.

According to a new data by the Debt Management Office (DMO)  obtained by BH, funds warehoused under the Unclaimed Funds Trust Fund (UFTF) have been converted into government securities.

Latest figures from the DMO’s domestic debt stock report  showed that ‘UFTF FGN Security’ stood at N100 billion as of December 31, 2025, representing about 0.12 per cent of the Federal Government’s total domestic debt.

Thought, the instrument is relatively small compared to conventional borrowings such as FGN bonds and Treasury bills, our correspondent learnt that the Federal Government in the process of securing another N795billion from the idle pool.

The development highlights a controversial financing source rooted in private sector funds left unclaimed by investors and bank customers.

The UFTF refers to the Unclaimed Funds Trust Fund, a pool created under the Finance Act 2020 to warehouse idle financial assets.

According to the National Debt Management Framework 2023–2027, unclaimed dividends of quoted companies and balances in dormant bank accounts that have remained inactive for at least six years are transferred into the fund.

The document further explained that the Debt Management Office manages the fund in collaboration with the Central Bank of Nigeria and the Securities and Exchange Commission, and that any investment of the fund in Federal Government securities is recognised as part of public debt.

This means that the N100 billion recorded under “UFTF FGN Security” reflects funds sourced from unclaimed private assets but deployed by the government as part of its borrowing programme.

The Finance Act 2020 had earlier provided the legal basis for the arrangement, explicitly allowing the Federal Government to utilise the funds.

“Such unclaimed dividends transferred to the Unclaimed Funds Trust Fund shall be a special debt owed by the Federal Government to the shareholders and shall be available for claim by the shareholder at any time, pursuant to the aforementioned perpetual trust”, the act stated.

The development comes amid a steady rise in Nigeria’s debt profile, driven largely by persistent fiscal deficits and increasing reliance on domestic borrowing.

According to data from the same DMO, total Federal Government domestic debt stood at about N80.49 trillion as of December 2025, with FGN bonds accounting for the bulk at over 79 per cent, followed by Treasury bills at about 17 per cent.

It would be recalled that the CBN had in a circular it issued to banks and other financial institutions in July 2024, directed them to transfer all dormant accounts, unclaimed balances, and other financial assets to its dedicated account.

The apex bank made this known in a circular signed by its acting Director of the Financial Policy and Banking Regulation Department, John Onojah.

According to the CBN, all dormant accounts and unclaimed balances with banks for at least 10 years will be warehoused in a dedicated account known as the Unclaimed Balances Trust Fund Pool Account.

The apex bank added that the funds from dormant accounts and unclaimed balances may be invested in Nigerian Treasury Bills and other government securities.

The CBN, however, said the new guidelines, which are a review of the guidelines issued in October 2015, exempted dormant accounts and unclaimed balances under litigation and investigation.

“CBN shall treat unclaimed balances (dormant accounts and financial assets) as follows: Open and maintain the ‘UBTF Pool Account’, maintain records of the beneficiaries of the unclaimed balances warehoused in the UBTF Pool Account.

“Invest the funds in Nigerian treasury bills (NTBs) and other securities as may be approved by the ‘Unclaimed Balances Management Committee.

“Refund the principal and interest (if any) on the invested funds to the beneficiaries not later than 10 working days from the date of receipt of the request, and where it is imperative to extend the timeline, a notice of extension shall be communicated to the requesting FI stating reasons for the extension”, the guideline reads.

The CBN also directed all banks and financial institutions to publicly disclose details of dormant accounts, unclaimed balances, and other financial assets on their official websites.

Despite its small size, the use of unclaimed funds has continued to attract criticism from stakeholders, particularly since the policy was introduced.

The controversial withdrawal shines a spotlight on vast sums of forgotten wealth within Nigeria’s financial system, even as citizens grapple with economic hardship.

Economists, financial experts and civil society groups who spoke on the development said it has implications for trust in the banking and capital markets.

For instance, the Socio-Economic Rights and Accountability Project (SERAP), asked the Federal Government to drop its plan to borrow about N1 trillion from unclaimed dividends and funds in dormant accounts.