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Why FG can borrow from unclaimed dividends, dormant account balances

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Finance Act 2020

The federal government has started having the privilege of borrowing funds from unclaimed dividends and dormant bank account balances unattended for at least six years.

This is coming on the heels of the Finance Act 2020 recently signed into law by President Muhammadu Buhari’s administration. 

Techeconomy.ng gathered that the funds are made available as a special debt owed by the government to the respective shareholders and the dormant bank account holders.

The official bank accounts owned by the federal government, state government, local governments or any of their ministries, departments or agencies are specially exempted by the Act.

The Finance Act read: “Any unclaimed dividend of a public limited liability company quoted on the Nigerian Stock Exchange and any unutilised amounts in a dormant bank account maintained in or by a deposit money bank which has remained unclaimed or unutilised for a period of not less than six years from the date of declaring the dividend or domiciling the funds in a bank account shall be transferred immediately to the trust fund.”

 

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