FG To Borrow Dormant Account Balances And Unclaimed Dividends From Nigerians

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Wednesday 20th of January 2021

FG To Borrow Dormant Account Balances And Unclaimed Dividends From Nigerians

Unclaimed dividends and bank account balances of Nigerians unclaimed for at least six years will be transferred to the Federal government.

This is according to the provisions in the Finance Act 2020 recently signed into law by President Buhari. 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 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 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”
.  It 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.

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  1. author

    Woah thats intresting

  1. author
    Habib Ali

    Allah help us all

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    Very interesting piece

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    Awesome read

  1. author
    Morgan inyang

    so typical

  1. author

    Thats great

  1. author


  1. author

    Very informative

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    amazing article wow

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    great publisher

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  1. author
    Hafsah Usman

    okay now i know

  1. author

    good read

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    you should be careful

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    Mad oh.

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    wow good write

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    Nice one Very nice

  1. author
    Ikenna Joseph

    Done reading

  1. author


  1. author
    Amanda Agu

    Nice one

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