The Federal Government has recorded a N100bn borrowing from unclaimed dividends and dormant bank accounts, according to new data from the Debt Management Office, which shows that funds held under the Unclaimed Funds Trust Fund have been converted into government securities.
The latest figures from the DMO’s domestic debt stock report indicate that “UFTF FGN Security” stood at N100bn as of December 31, 2025, accounting for about 0.12 per cent of the Federal Government’s total domestic debt.
The instrument, though relatively small compared to conventional borrowings such as FGN bonds and Treasury bills, underscores a controversial financing source derived from private sector funds left unclaimed by investors and bank customers.
The UFTF, or Unclaimed Funds Trust Fund, was established under the Finance Act 2020 to warehouse idle financial assets. Under the National Debt Management Framework 2023–2027, unclaimed dividends of listed companies and balances in dormant bank accounts that have been inactive for at least six years are transferred into the fund.
The document further stated that the Debt Management Office administers 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 classified as part of public debt.
This implies that the N100bn recorded under “UFTF FGN Security” represents funds drawn from unclaimed private assets but deployed by the government within its borrowing programme.
The Finance Act 2020 had earlier established the legal framework for the arrangement, expressly permitting 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,” it stated.
The development comes amid a sustained increase in Nigeria’s debt profile, largely driven by persistent fiscal deficits and growing reliance on domestic borrowing.
Data from the same DMO report showed that total Federal Government domestic debt rose to about N80.49tn as of December 2025, with FGN bonds accounting for more than 79 per cent of the total, followed by Treasury bills at roughly 17 per cent.
Figures from the same DMO report showed that total Federal Government domestic debt reached about N80.49tn as of December 2025, with FGN bonds accounting for more than 79 per cent of the total and Treasury bills contributing roughly 17 per cent.
Although relatively modest in scale, the use of unclaimed funds has continued to draw criticism from stakeholders since the policy was introduced.
