FG Raises N100bn from Unclaimed Funds, Integrates into Public Debt Framework

The Federal Government has raised N100 billion through the Unclaimed Funds Trust Fund, marking a significant development in the integration of dormant private assets into Nigeria’s public debt structure.

Latest data released by the Debt Management Office shows that the instrument, classified as “UFTF FGN Security,” stood at N100 billion as of the end of 2025. The amount represents approximately 0.12 percent of the country’s total domestic debt stock, reflecting its relatively small size within the broader debt portfolio.

Nigeria’s total domestic debt was reported at N80.49 trillion, with conventional instruments continuing to dominate government borrowing. Federal Government bonds accounted for the largest share at N63.63 trillion, representing 79.06 percent of total domestic debt. Treasury Bills followed with N13.85 trillion, accounting for 17.21 percent.

Read Also

• fg-dismisses-claims-of-hidden-spending-in-world-bank-report
• Nigeria Rules Out IMF Loans Despite Mounting Debt Pressures — Edun

Other instruments contributed smaller proportions to the debt profile. Promissory notes were recorded at N1.54 trillion, representing 1.92 percent, while Sukuk bonds stood at N1.19 trillion, accounting for 1.48 percent. Savings bonds and green bonds made up marginal shares of 0.13 percent and 0.08 percent, respectively.

Within this structure, the inclusion of the UFTF instrument signals a shift in how unclaimed financial assets are utilized within the government’s financing framework. The funds originate from unclaimed dividends of listed companies and balances in dormant bank accounts that have remained inactive over extended periods.

The legal foundation for the UFTF was established under the Finance Act 2020, which created a mechanism for transferring such funds into a central pool managed by the government. Under the framework, unclaimed dividends and dormant account balances are moved into the trust fund after meeting specified inactivity conditions.

Management of the fund is carried out by the Debt Management Office in collaboration with the Central Bank of Nigeria and the Securities and Exchange Commission. The arrangement ensures that the funds are formally incorporated into the country’s financial system and subject to regulatory oversight.

According to the National Debt Management Framework for 2023–2027, funds held within the UFTF can be invested in Federal Government securities. Once deployed in this manner, they are recorded as part of public debt, effectively converting dormant private assets into a source of government financing.

This explains the appearance of the UFTF instrument within the domestic debt stock, indicating that the funds are actively used rather than held passively. The development reflects a broader effort by authorities to expand funding options and improve liquidity within the fiscal system.

The integration of unclaimed funds into public debt highlights an evolving approach to resource mobilisation, particularly in an environment where governments are seeking alternative financing sources amid fiscal constraints. By leveraging idle funds, the government aims to support budgetary requirements while reducing immediate reliance on external borrowing.

Despite its relatively small share of total debt, the UFTF component carries notable policy implications. It demonstrates the government’s intention to maximise available financial resources and incorporate previously untapped assets into formal economic use.

At the same time, the framework preserves the rights of original owners, as provisions exist for individuals and entities to reclaim their funds upon verification. This requires the maintenance of accurate records and transparent processes to ensure that legitimate claims can be honoured when they arise.

The inclusion of the UFTF in Nigeria’s debt profile underscores the increasing complexity of public debt management and the adoption of innovative financing strategies. It also reflects the government’s focus on strengthening domestic funding sources as part of its broader fiscal strategy.

Authorities are expected to continue exploring mechanisms that enhance resource mobilisation while maintaining financial stability and accountability within the public finance system.