𝗙𝗚 𝗕𝗼𝗿𝗿𝗼𝘄𝘀 #100𝗯𝗻 𝗙𝗿𝗼𝗺 𝗗𝗼𝗿𝗺𝗮𝗻𝘁 𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝘀, 𝗨𝗻𝗰𝗹𝗮𝗶𝗺𝗲𝗱 𝗗𝗶𝘃𝗶𝗱𝗲𝗻𝗱𝘀 𝗔𝗺𝗶𝗱 𝗥𝗶𝘀𝗶𝗻𝗴 𝗗𝗲𝗯𝘁 𝗖𝗼𝗻𝗰𝗲𝗿𝗻𝘀.

𝗕𝗬 𝗡𝗜𝗚𝗘𝗥𝗗𝗘𝗟𝗧𝗔 𝗩𝗢𝗜𝗖𝗘,

20𝘁𝗵, 𝗔𝗽𝗿𝗶𝗹, 2026

The Federal Government has sourced N100 billion through dormant bank accounts and unclaimed dividends, as part of efforts to support its domestic borrowing programme, according to fresh data from the Debt Management Office.

The funds were raised under an instrument identified as the “Unclaimed Funds Trust Fund (UFTF) FGN Security,” captured in the DMO’s domestic debt stock report as of December 31, 2025. The amount represents approximately 0.12 per cent of Nigeria’s total domestic debt, which stood at N80.49 trillion.

The move is backed by provisions of the Finance Act 2020, which established a legal framework for transferring dormant account balances and unclaimed dividends into a central trust fund. Under the arrangement, such funds can be invested in government securities while remaining available for claims by their rightful owners.

The UFTF is jointly managed by the DMO, the Central Bank of Nigeria, and the Securities and Exchange Commission, in line with the National Debt Management Framework 2023–2027.

Economic analysts say the development highlights increasing pressure on government finances, driven by weak revenue generation, fluctuating oil earnings, and widening fiscal deficits. Some experts have called for stricter fiscal discipline, warning that continued reliance on borrowing—even from unconventional sources—may not be sustainable.

One Lagos-based economist stressed the need for a shift in strategy, urging the government to focus on unlocking Nigeria’s underutilised sectors, including agriculture, solid minerals, and industrial production, rather than expanding debt channels.

Data from the DMO show that traditional instruments still dominate domestic borrowing. Federal Government bonds account for N63.63 trillion, or 79.06 per cent of total domestic debt, while treasury bills make up N13.85 trillion, representing 17.21 per cent. Other components include promissory notes at N1.54 trillion, Sukuk bonds at N1.19 trillion, alongside smaller issuances such as savings and green bonds.

Although the N100 billion raised via the UFTF is relatively small, analysts note that its source—private funds belonging to bank customers and shareholders—raises concerns around transparency, investor confidence, and the efficiency of refund mechanisms.

Nigeria’s unclaimed dividends were estimated at over N215 billion as of 2024. The SEC has since cautioned companies and registrars against declaring such dividends statute-barred without compliance with the Finance Act 2020, reaffirming that affected funds should be transferred to the UFTF while preserving shareholders’ rights to claim them.

Market observers and civil society groups have continued to question the policy, arguing that while it may be legally grounded, reliance on dormant private funds reflects deeper structural issues within the country’s public finance system.

Economists maintain that long-term fiscal stability will depend less on expanding borrowing options and more on improving productivity, boosting exports, strengthening tax systems, and enforcing prudent public spending.