Nigeria’s domestic debt profile has revealed that the Federal Government raised N100 billion through the Unclaimed Funds Trust Fund.
This is according to the latest data from the Debt Management Office (DMO).
Figures from the DMO’s domestic debt stock report show that the instrument listed as “UFTF FGN Security” stood at N100 billion as of December 31, 2025, accounting for about 0.12% of total domestic debt, signalling the formal integration of unclaimed private funds into the government’s borrowing framework.
Domestic debt structure dominated by bonds
The report puts total Federal Government domestic debt at N80.49 trillion, with conventional instruments still accounting for the overwhelming share of borrowings.
FGN Bonds remained dominant at N63.63 trillion, representing 79.06% of the total debt stock. This category includes standard naira bonds, securitised Ways and Means advances, and US dollar-denominated bonds. Treasury Bills followed with N13.85 trillion or 17.21%, reinforcing their role in short-term liquidity management.
Other instruments played relatively minor roles. Promissory Notes stood at N1.54 trillion or 1.92%, while Sukuk bonds accounted for N1.19 trillion or 1.48%. Savings Bonds and Green Bonds contributed marginal shares of 0.13% and 0.08%, respectively.
Against this backdrop, the N100 billion raised via UFTF remains small in size but significant in implication, as it represents funds originally belonging to private investors and bank customers that have been repurposed into public debt.
How unclaimed funds became government debt
The UFTF structure originates from the Finance Act 2020, which created a legal pathway for the government to warehouse unclaimed dividends and dormant bank balances.
Under the framework, unclaimed dividends of listed companies and dormant account balances that have remained inactive for years are transferred into a pooled fund.
Also, the National Debt Management Framework 2023–2027 explains that unclaimed dividends of listed companies and balances in dormant bank accounts are transferred into the Unclaimed Funds Trust Fund (UFTF) after meeting the required inactivity period. It states that the fund is managed by the Debt Management Office (DMO) in collaboration with the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC). The framework adds that any investment of these funds in Federal Government securities is recognised as part of public debt, effectively converting unclaimed private assets into government borrowing.
This explains the appearance of “UFTF FGN Security” in the debt stock data, reflecting not just a passive holding of funds but their active deployment within the government’s borrowing programme.
What you should know
Guidelines issued by the Central Bank reinforce how these funds are managed. Dormant accounts and unclaimed balances are warehoused in a dedicated trust pool and may be invested in government securities.
At the same time, the framework mandates that beneficiaries retain full rights to reclaim both principal and any accrued returns within specified timelines once claims are made.
Banks are also required to disclose such balances publicly, improving transparency but also highlighting the scale of idle funds within the financial system.
Despite its legal backing, the policy faced criticism from civil society and market stakeholders, who argue that the use of private funds for public borrowing raises governance and trust concerns.
They borrow money to go into the looting machine. Some of the money will be used by tinibus children like water, spoiled brats.