FG Borrows N100bn from Unclaimed Funds Trust Account as Domestic Debt Hits N80.49tn

Nigeria’s Federal Government has raised N100 billion from the Unclaimed Funds Trust Account, a pool of dormant private funds now being used as part of public borrowing, according to fresh data from the Debt Management Office (DMO). The development highlights new and unconventional funding channels being tapped to manage the country’s rising debt profile.

The DMO’s latest domestic debt report shows the instrument, listed as “UFTF FGN Security,” stood at N100 billion as of December 31, 2025. While it represents just 0.12% of total domestic debt, it signals the formal integration of unclaimed private funds into government borrowing, bringing additional scrutiny to how such resources are deployed.

Overall, Nigeria’s domestic debt climbed to N80.49 trillion, with FGN Bonds dominating at N63.63 trillion, or 79.06% of the total. Treasury Bills followed at N13.85 trillion, while Promissory Notes, Sukuk, Savings Bonds, and Green Bonds accounted for smaller portions of the debt mix, reflecting a heavily bond-driven financing structure.

The Unclaimed Funds Trust Fund (UFTF) originates from the Finance Act 2020, which allows unclaimed dividends and dormant bank account balances to be pooled and managed under a regulated framework. According to the National Debt Management Framework 2023–2027, these funds can be invested in Federal Government securities, effectively converting idle private money into government borrowing instruments overseen by the DMO, CBN, and SEC.

While regulations ensure that beneficiaries can still reclaim their funds along with accrued returns, the policy continues to spark debate. Critics argue that using private dormant funds for public financing raises concerns about transparency and trust, even though regulators insist the system improves efficiency and mobilises idle liquidity within the financial system.

source: nairametrics