The Federal Government has begun using funds in the Unclaimed Dividends Trust Fund to finance its budget deficit.
The initial estimate placed the size of the fund at N850 billion, but the size varies according to new deposits and withdrawals.
An anonymous source at the Federal Ministry of Finance, Budget, and National Planning said that contrary to certain official posturing, the Federal Government had started drawing from the unclaimed dividends to fund the budget deficit.
The source said the government had withdrawn from the trust fund in 2021 to finance the year’s budget deficit.
The fund is being managed by the Debt Management Office (DMO) and the Accountant-General of the Federation.
According to the Director-General, DMO, Ms. Patience Oniha, the trust fund which contains a backlog of unclaimed dividends and monies from dormant accounts is “still a work in progress”.
Director-General, Securities and Exchange Commission (SEC), Mallam Lamido Yuguda, said “It will be utilized in line with the investment objectives of that Trust Fund.
“However, if anybody comes forward at any given time to claim their unclaimed dividends, this Fund will be able to repay these dividends without any problems.”
