The Nigerian Government has borrowed N100bn from the unclaimed dividends and dormant bank accounts, according to the new data from the Debt Management Office.
The data showed that funds warehoused under the Unclaimed Funds Trust Fund have been converted into government securities and that the DMO’s domestic debt stock, “UFTF FGN Security” stood at N100bn as of December 31, 2025, representing about 0.12 per cent of the Federal Government of Nigeria’s total domestic debt.
The instrument, which is relatively small compared to conventional borrowings such as FGN bonds and Treasury bills, nonetheless 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 N100bn recorded under “UFTF FGN Security” reflects funds sourced from unclaimed private assets but deployed by the government as part of its borrowing programme.
The development comes amid a steady rise in Nigeria’s debt profile, driven largely by persistent fiscal deficits and increasing reliance on domestic borrowing.
Data from the same DMO report showed that total Federal Government domestic debt stood at about N80.49tn 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.
Despite its small size, the use of unclaimed funds has continued to attract criticism from stakeholders, particularly since the policy was introduced.
The Socio-Economic Rights and Accountability Project earlier asked the Federal Government to drop its plan of borrowing about N895bn from unclaimed dividends and funds in dormant accounts.
GIK/APA