FG to borrow dormant account balances and unclaimed dividends from Nigerians
The Federal government has announced that it will be borrowing from Nigerians unclaimed dividends and dormant bank account balances that have been left for up to at least six years.
According to the Finance act 2020 which the president signed into law, 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 or local governments or any of their 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”.
The act also states that the original owners of the money can claim their money at any time. 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 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 loans from multilateral lenders.
It’s unfortunate FG cannot think of other ways to raise money other than it’s citizens. It’s well
Federal government are just looking for money here and there without provide succur for her citizens, this is not good at all.
You better don’t touch innocent civilians money….. It’s always Everytime that your administration borrowed money just of recent is 1.9 billions dollars and this….. This depts is too much and hoped it doesn’t kill this country in general….
Why can’t they go and borrow money outside or from banks when they know that they won’t pay back the money. Way of taking another person’s money.
This present administration doesn’t know anything except borrowing, they can even say Nigerians should gather or donate money for them. They don’t have the shame.
Continue borrowing here and there, just remember that one day you will surely account for it.