Nigeria’s Federal Government raised ₦100 billion in 2025 by drawing on the Unclaimed Funds Trust Fund (UFTF), marking a notable shift in how idle private funds are integrated into public financing.
Data from the Debt Management Office (DMO) shows that the instrument, listed as “UFTF FGN Security,” stood at ₦100 billion as of December 31, 2025, accounting for about 0.12 per cent of the country’s total domestic debt.
While relatively small in size, the move is significant because it reflects the formal conversion of unclaimed private funds into part of the government’s borrowing framework.
Nigeria’s domestic debt stock remains heavily dominated by traditional instruments. Total domestic debt stood at ₦80.49 trillion, with FGN Bonds accounting for ₦63.63 trillion, or 79.06 per cent. Treasury Bills followed at ₦13.85 trillion (17.21 per cent), underscoring their continued role in short-term liquidity management.
Other instruments, including Promissory Notes (₦1.54 trillion), Sukuk (₦1.19 trillion), Savings Bonds, and Green Bonds, made up smaller portions of the debt profile.
The inclusion of UFTF securities, however, introduces a different dimension. Unlike conventional borrowing, these funds originate from unclaimed dividends and dormant bank accounts held within the financial system.
The framework for this arrangement was established under the Finance Act 2020, which created a legal basis for pooling such funds into a central trust. Once transferred, the funds are managed by the DMO in collaboration with the Central Bank of Nigeria and the Securities and Exchange Commission.
Under current guidelines, these idle balances can be invested in government securities, effectively converting them into public debt instruments. This explains the appearance of UFTF-backed securities in the official debt data, not as passive reserves, but as actively deployed financing tools.
Importantly, the policy preserves the rights of original owners. Individuals and companies can still reclaim their funds, along with any accrued returns, once valid claims are made.
However, the approach has sparked debate. Critics argue that repurposing private funds for government borrowing raises concerns around transparency, trust, and governance, even with legal safeguards in place.
As Nigeria continues to explore diverse funding sources, the use of unclaimed funds highlights both the creativity, and the controversy, shaping the country’s evolving debt strategy.
