FG Borrows N100 Billion from Dormant Accounts and Unclaimed Dividends Amid Debt Crisis
Recent data from the Debt Management Office (DMO) reveals that the Nigerian government has secured N100 billion through the Unclaimed Funds Trust Fund (UFTF), utilizing funds from dormant bank accounts and unclaimed dividends. This strategic move is part of the government's broader borrowing program to address mounting fiscal deficits and financial obligations.
Government Taps Sleeping Funds to Finance Budgets
The DMO disclosed this development in its domestic stock report, listing an instrument labeled UFTF FGN Security valued at N100 billion as of December 31, 2025. This amount represents approximately 0.12% of the federal government's total domestic debt stock, which stands at N80.49 trillion. The report has sparked renewed debate over Nigeria's escalating debt levels and the innovative use of unclaimed funds to support government financing needs.
Legal Framework and Management of Dormant Accounts
This arrangement is governed by the Finance Act 2020, which established guidelines allowing dormant account balances and unclaimed dividends to be transferred into a central trust fund until claimed by their rightful owners. Under this framework, these funds can be invested in federal government securities, thereby incorporating them into the country's public debt portfolio.
The National Debt Management Framework 2023-2027 outlines that the Debt Management Office manages the UFTF in collaboration with the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC). Experts note that this approach reflects a growing search for alternative funding sources, driven by pressures on public revenue, weak oil earnings, and expanding fiscal deficits.
Nigeria's Domestic Borrowing Composition
According to the DMO, conventional debt instruments continue to dominate public borrowings in Nigeria. In 2025, FGN Bonds accounted for N63.63 trillion, representing 79.06% of domestic debt. Treasury Bills followed with N13.85 trillion at 17.21%, while Promissory Notes accounted for N1.54 trillion. Sukuk bonds contributed N1.19 trillion, with Savings Bonds and Green Bonds making up smaller portions of the overall debt stock.
Rising Unclaimed Funds and Regulatory Directives
Checks indicate that as of 2024, total unclaimed dividends in Nigeria amounted to N215 billion. The SEC recently issued a circular warning registrars and quoted companies not to treat old dividends as status-barred without considering the provisions of the Finance Act 2020. The SEC clarified that dividends belonging to publicly listed firms, which remain unclaimed for six years or more, must be transferred to the UFTF and held in trust until owners come forward to claim them.
The commission also emphasized that shareholders retain the right to claim dividends that are not statute-barred before December 31, 2020. It directed companies and registrars to continue honoring valid requests for unpaid dividends and to file periodic compliance reports to ensure transparency and accountability.
Nigeria's Debt Profile Under President Tinubu
A prior report disclosed that fresh domestic and external borrowings under President Bola Tinubu have pushed Nigeria's total public debt higher, imposing a heavier financial burden on citizens amid rising living costs. Data released on April 14, 2026, by the DMO showed that total public debt increased by N5.98 trillion (3.9%) from N153.29 trillion at the end of September 2025. Year-on-year, the increase was N14.61 trillion (10.1%) from N144.67 trillion in December 2024.
Both domestic and external loans contributed to this quarterly jump. External debt grew from N71.48 trillion to N74.43 trillion (an increase of N2.95 trillion or 4.1%), while domestic debt rose from N81.82 trillion to N84.85 trillion (an increase of N3.03 trillion or 3.7%). The DMO, led by Patience Oniha, reported that Nigeria's debt stock ballooned to N187 trillion in 2025, underscoring the severity of the fiscal challenge.
Broader Financial Sector Developments
In related news, Standard Chartered Bank Nigeria announced that, effective February 28, 2026, it will close accounts that do not meet its new minimum Assets Under Management (AUM) requirement of N7.5 million. This move is part of the bank's strategy to introduce its Emerging Affluent segment and phase out the Personal Banking segment. In a notice to customers titled "Important Notice: Branch Network and Segment Update," the bank stated that accounts failing to meet the minimum balance by the deadline will be closed, reflecting ongoing adjustments in the financial sector.
