By David Akinmola
The Federal Government borrowed N100 billion from the Unclaimed Funds Trust Account in 2025, raising fresh concerns over the use of dormant financial assets to plug fiscal gaps amid mounting revenue pressures.
The borrowing, which forms part of efforts to support budget implementation, underscores the government’s increasing reliance on alternative funding sources as traditional revenues remain constrained. The Unclaimed Funds Trust Account, established to warehouse dormant bank balances and unclaimed dividends, is managed under the oversight of the Central Bank of Nigeria.
Industry analysts said the move, while permitted under existing regulations, could trigger debate over transparency and the long-term implications for rightful owners of the funds. They noted that the account was originally designed as a safeguard mechanism, ensuring that unclaimed assets are preserved until beneficiaries come forward.
Officials familiar with the development indicated that the funds would be deployed to finance critical government obligations, including infrastructure and social spending, in line with the 2025 budget framework.
The borrowing also highlights the persistent fiscal strain facing the government, despite ongoing reforms by the Federal Ministry of Finance aimed at boosting revenue generation and curbing leakages.
Financial experts warned that frequent recourse to such funds could erode public confidence in the financial system if not properly managed, urging authorities to provide clear guidelines on repayment timelines and accountability mechanisms.
The Unclaimed Funds Trust Account was formalised following policy directives to mop up idle balances in deposit money banks and registrars, with the expectation that it would serve as a temporary holding pool rather than a recurring financing window for government expenditure.
As scrutiny grows, stakeholders are calling for greater disclosure on how the borrowed funds are utilised, as well as assurances that claims by rightful owners will not be jeopardised.
