Questions over financial transparency and public trust are resurfacing after new data showed the Federal Government has drawn N100 billion from dormant bank accounts and unclaimed dividends to support its borrowing programme. The disclosure, contained in the latest domestic debt report by the Debt Management Office, is prompting scrutiny over how privately owned but idle funds are being utilised.
According to officials, the funds were raised through an instrument known as the Unclaimed Funds Trust Fund security, captured as part of Nigeria’s domestic debt stock as of December 31, 2025. Although the amount represents a small fraction of the country’s N80.49 trillion domestic debt, analysts say the source of the funds makes the development particularly sensitive.
The arrangement is backed by the Finance Act 2020, which allows unclaimed dividends and dormant account balances to be pooled into a central trust. Authorities say the funds are held on behalf of their rightful owners but can be invested in government securities, effectively turning them into a financing tool for public expenditure.
However, market watchers warn that the approach could affect confidence if not carefully managed. They note that these funds belong to individuals and shareholders, raising concerns about how quickly claims will be honoured and whether the process remains transparent and accountable.
The Securities and Exchange Commission has already issued guidance to ensure compliance, directing companies and registrars to continue paying legitimate claims while transferring eligible funds into the trust. Regulators maintain that shareholders still retain the right to recover their money, even as the framework evolves.
Economists say the development reflects growing pressure on government finances, driven by revenue challenges and rising debt levels. While the move offers a temporary funding option, experts stress that strengthening fiscal discipline and improving revenue generation will be critical to sustaining public confidence and reducing reliance on unconventional borrowing sources.
