FG raises N100bn from unclaimed funds as domestic debt hits N80.49tn

The Federal Government secured N100 billion in 2025 through the Unclaimed Funds Trust Fund (UFTF), according to fresh figures from the Debt Management Office (DMO), signalling the formal use of dormant private funds within Nigeria’s borrowing structure.

Data from the DMO’s domestic debt report showed the instrument, listed as “UFTF FGN Security,” stood at N100 billion as of December 31, 2025. The amount represents about 0.12 per cent of the country’s total domestic debt stock.

Nigeria’s overall domestic debt was put at N80.49 trillion, with conventional borrowing instruments still dominating government financing.

FGN Bonds remained the largest component at N63.63 trillion, accounting for 79.06 per cent of the total debt. Treasury Bills followed with N13.85 trillion or 17.21 per cent, underscoring their continued role in short-term funding and liquidity management.

Other debt instruments made up smaller portions of the total stock. Promissory Notes stood at N1.54 trillion, while Sukuk bonds accounted for N1.19 trillion. Savings Bonds and Green Bonds contributed marginal shares.

Though relatively small in size, the UFTF borrowing is considered significant because the funds originated from unclaimed dividends and dormant bank accounts, now converted into public debt instruments.

The framework was created under the Finance Act 2020, which established a legal basis for warehousing idle private funds in a central trust pool. Under the arrangement, unclaimed dividends from listed companies and long-inactive bank balances are transferred into the fund after meeting required inactivity periods.

The National Debt Management Framework 2023–2027 states that the fund is jointly managed by the DMO, the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC). It also recognises any investment of those funds in Federal Government securities as part of public debt.

Regulators maintain that beneficiaries still retain the right to reclaim both their principal and accrued returns once valid claims are submitted. Banks are also required to publicly disclose dormant balances for transparency.

However, the policy has continued to draw criticism from some civil society groups and market observers, who argue that deploying private funds for public borrowing raises concerns over trust, governance and accountability.