The Federal Government's booking of N100bn from the Unclaimed Funds Trust Fund as domestic borrowing is permitted under the Finance Act 2020. That law established a perpetual trust allowing unclaimed dividends and dormant account balances to be held and temporarily used by the state until rightful owners claim them. Similar practices exist in parts of the United States and Canada, where governments take custody of abandoned assets for public benefit. The arrangement does not erase ownership rights, as beneficiaries can still recover their funds. However, concerns remain about how transparently and efficiently the system operates. Investors require not only legal assurance but also practical access to their money when needed. The Debt Management Office and the Central Bank of Nigeria's handling of the fund will influence public and market confidence. While the N100bn is small relative to Nigeria's total domestic debt, perception in capital markets matters. If investors view the move as overreach, sentiment—especially among retail investors—could weaken. For trust to hold, there must be a real-time digital registry, automated repayment within ten working days, and independent annual audits with investor representation. Without these, the fund risks being seen as a mechanism for quiet expropriation rather than prudent financial management.
The government says it is merely using idle funds under law, yet offers no proof that claimants can access their money quickly and without hassle. Investors like those with unclaimed dividends from Nigerian companies may face delays despite the ten-day repayment promise. If the Debt Management Office cannot demonstrate fast, seamless returns, the policy undermines the very trust it depends on. A system that works only when the state benefits is not a trust—it is a one-way arrangement.
💡 NaijaBuzz is an AI-assisted news aggregator. This content is curated from third-party sources — NaijaBuzz is not the original publisher and is not responsible for the accuracy of source reporting. The NaijaBuzz Take is AI-assisted editorial opinion only, not established fact. All persons mentioned are presumed innocent until proven guilty by a court of competent jurisdiction. NaijaBuzz does not endorse the views expressed in source articles.
