Federal Government Secures N100 Billion From Unclaimed Dividends and Dormant Bank Accounts Amid Fiscal Crisis

Federal Government taps N100bn from dormant accounts and dividends to fund debt. Learn about the UFTF and the planned N795bn additional borrowing in Nigeria.

By: AXL Media

Published: Apr 20, 2026, 6:11 AM EDT

Source: Information for this report was sourced from Business Hallmark

Government Accesses Private Asset Pool to Bridge Revenue Gaps

The Federal Government has successfully tapped into the pool of unclaimed dividends and dormant bank accounts, securing N100 billion to address persistent fiscal deficits. This strategic move, confirmed by recent data from the Debt Management Office (DMO), involves the conversion of idle financial assets into government securities. While the current amount represents a small fraction of the N80.49 trillion domestic debt stock, it marks the beginning of a controversial program to mobilize hundreds of billions in previously untouched private sector funds.

Legal Framework for the Appropriation of Idle Funds

The utilization of these funds is sanctioned under the Finance Act 2020, which established the Unclaimed Funds Trust Fund (UFTF). Under this law, dividends from quoted companies and balances in dormant bank accounts that have remained inactive for a minimum of six years are transferred to the fund. Managed by the DMO in coordination with the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission, these assets are legally categorized as special debts owed by the government to the original owners.

Central Bank Directives on Dormant Account Transfers

In a regulatory shift in mid-2024, the Central Bank of Nigeria issued a circular mandating that all financial institutions transfer unclaimed balances and dormant accounts inactive for ten years to a dedicated trust fund account. According to the directive signed by John Onojah, the acting Director of Financial Policy and Banking Regulation, these funds are specifically earmarked for investment in Nigerian Treasury Bills and other government-backed securities. This administrative push ensures a steady flow of liquidity from the banking sector into the government’s borrowing program.