The government of Nigeria has raised ₦100 billion from unclaimed private funds, integrating the resources into its borrowing programme as the country’s domestic debt stock climbed to ₦80.49 trillion.
The development was disclosed in the latest domestic debt report released by the Debt Management Office (DMO). The report shows that the funds were raised through an instrument labelled “UFTF FGN Security,” representing borrowing backed by the Unclaimed Funds Trust Fund (UFTF).
According to the DMO data, the ₦100 billion recorded as of December 31, 2025 accounts for approximately 0.12% of Nigeria’s total domestic debt, marking the formal inclusion of unclaimed private funds within the government’s debt structure.
Bonds remain dominant in Nigeria’s debt profile
Despite the introduction of the new instrument, Nigeria’s domestic borrowing continues to be dominated by conventional debt instruments.
The DMO report shows that Federal Government of Nigeria (FGN) bonds account for the largest share of domestic debt, standing at ₦63.63 trillion, which represents 79.06% of the total debt stock.
This category includes standard naira-denominated bonds, securitised Ways and Means advances, and US dollar-denominated bonds issued locally.
Meanwhile, Treasury Bills remain the second-largest instrument, totaling ₦13.85 trillion, or 17.21% of the domestic debt, highlighting their role in managing short-term government liquidity.
Other debt instruments contribute smaller portions to the overall structure:
- Promissory Notes: ₦1.54 trillion (1.92%)
- Sukuk Bonds: ₦1.19 trillion (1.48%)
- Savings Bonds: 0.13%
- Green Bonds: 0.08%
Against this backdrop, the ₦100 billion raised through the Unclaimed Funds Trust Fund remains relatively small, but its introduction carries broader policy implications because the funds originally belonged to private investors and bank customers.
How unclaimed funds became part of government borrowing
The legal framework enabling this mechanism originates from the Finance Act 2020, which established a process for the government to manage unclaimed dividends and dormant bank account balances.
Under the policy, dividends belonging to shareholders of listed companies that remain unclaimed for years, along with balances in inactive bank accounts, are transferred into a pooled trust structure known as the Unclaimed Funds Trust Fund (UFTF).
According to the National Debt Management Framework 2023–2027, the fund is jointly managed by the Debt Management Office, the Central Bank of Nigeria, and the Securities and Exchange Commission Nigeria.
The framework also allows the funds to be invested in Federal Government securities, and once deployed in this way, they are formally recognised as part of Nigeria’s public debt.
This explains the appearance of the “UFTF FGN Security” instrument in the debt data, indicating that the funds are not simply held in trust but are actively utilised within the government’s borrowing strategy.
Rights of beneficiaries remain protected
Despite being integrated into government financing, individuals and institutions that originally owned the funds retain the legal right to reclaim their money.
Guidelines issued by the Central Bank of Nigeria state that dormant account balances and unclaimed dividends are kept within a dedicated trust pool and may be invested in government securities.
However, the framework guarantees that beneficiaries can recover both the principal amount and any accrued returns once valid claims are made within the prescribed period.
Banks are also required to publicly disclose dormant balances and unclaimed dividends, improving transparency while highlighting the large volume of idle funds within Nigeria’s financial system.
Policy faces criticism from stakeholders
Despite its legal backing, the policy has attracted criticism from civil society groups and some market participants.
Critics argue that converting private funds into government borrowing instruments raises concerns about governance, financial transparency, and public trust.
Nonetheless, authorities maintain that the framework is designed to safeguard the funds while ensuring they remain productive within the financial system until rightful owners claim them.
