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FG To Borrow Dormant Account Balances, Unclaimed Dividends

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FG To Borrow Dormant Account Balances, Unclaimed Dividends

The Federal Government (FG) through Unclaimed Funds Trust Fund will borrow dividends and bank account balances unattended to for at least six years.

According to the Finance Act 2020 recently signed into law by President Muhammadu Buhari, the trust fund will be a sub-fund of the Crisis Intervention Fund.

“Any unclaimed dividend of a public limited liability company quoted on the Nigerian Stock Exchange 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 read.

The Act did not include 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 stipulates that the original owners of the money can claim it at any time

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.

This move will make needed funds available to the federal government without foreign exchange worries or conditions attached to loans from multilateral lenders.

 

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