FG To Borrow Dormant Account Balances And Unclaimed Dividends From Nigerians

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Unclaimed dividends and bank account balances of Nigerians unclaimed for at least six years will be transferred to the Federal .

This is according to the provisions in the Finance Act 2020 recently signed into by Buhari. The remitted funds will be available as special credit to the federal through the Unclaimed Funds Trust Fund.

The Finance Act reads in part;

“Any unclaimed dividend of a public limited liability quoted the and any unutilised amounts in a dormant bank account maintained in or by a deposit money bank which has remained unclaimed or unutilised for a period of not less than six years from the date of declaring the dividend or domiciling the funds in a bank account shall be transferred immediately to the trust fund”

The act exempts official owned by the federal , or local governments or any of ministries, departments or agencies.

According to the act, the monies transferred to the trust fund will be a “special debt owed by the federal government to shareholders and dormant bank account holders”. It also states that the original owners of the money can claim money at any .

The act stipulates that the operation of the trust fund will be supervised by the Debt Management Office (DMO) and governed by a governing council chaired by the finance minister and a co-chairperson from the private sector appointed by the .

members of the governing council shall include the governor of the Central Bank of Nigeria (CBN), director- of the Securities and Exchange Commission (SEC), managing director of the Deposit Insurance Corporation (NDIC), a representative of the registrars of companies, two representatives of the shareholders’ , a representative of the Bankers’ Committee and the director- of the Debt Management Office as the secretary of the trust fund.

According to financial experts, this move will make needed funds available to the federal government without foreign exchange worries or conditions attached to loans from multilateral lenders.