FG to borrow from Nigerians Bank Accounts – details

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The Nigeria Leader President Muhammadu Buhari has ordered that unclaimed dividends and bank account balances of Nigerians that are dormant for at least six years will be transferred to the Federal government accounts.

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

The Finance Act reads in part;

“Any unclaimed dividend of a public limited liability company quoted on the Nigerian Stock Exchange and any unutilized amounts in a dormant bank account maintained in or by a deposit money bank which has remained unclaimed or unutilized 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 bank accounts owned by the federal government, state government, local governments, or 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 their money at any time.

The act stipulates that the trust fund’s operation 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 president.

Other members of the governing council shall include the governor of the Central Bank of Nigeria (CBN), director-general of the Securities and Exchange Commission (SEC), managing director of the National Deposit Insurance Corporation (NDIC), a representative of the registrars of companies, two representatives of the shareholders’ association, a representative of the Bankers’ Committee and the director-general 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 multilateral lenders loans.

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