Business Economist backs Nigerian government’s plan to borrow from unclaimed...

Economist backs Nigerian government’s plan to borrow from unclaimed dividends


- Advertisment -

Economist backs Nigerian government’s plan to borrow from unclaimed dividends

Nigeria’s first Professor of Capital Market, Professor Uche Uwaleke, has said there is nothing wrong with Federal Government’s plan to borrow N895 billion from unclaimed dividends and dormant deposits in bank accounts.

Uwaleke, of Nasarawa State University, said: “The transfer of unclaimed assets (unclaimed dividends and dormant account balances) to an unclaimed funds Trust Fund is in line with what obtains in many parts of the world.

“The practice of escheating the funds to the government after a dormancy period is also consistent with what is done in countries like the United States of America (U.S.A), where state governments exercise such powers.

“The composition of the Governing Council of the Fund, which accommodates the key stakeholders, such as the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), Nigeria Deposit Insurance Corporation (NDIC), Debt Management Office (DMO), company registrars and shareholders, will address many of the concerns of listed companies, their shareholders and the banks. That way, any negative fallout will be mitigated.”

The expert noted that “the fact that the money will be transferred with interest to the real owners as soon as they are established should boost investor confidence”.

Uwaleke urged government to ensure that “the DMO, after taking over the funds, is supportive of efforts made to trace the real owners”.

How this impacts the overall economy, he said, “depends on what the government does with the money that is borrowed after six years of dormancy. Because, these unclaimed assets run into billions of naira, it is expected to impact positively on the economy if used for the common good, that is for development projects”.

The Finance Act 2020 was signed into law in December 2020. It allows the government to borrow unclaimed dividends and dormant account balances owned by Nigerians in any bank in the country.

But Socio-Economic Rights and Accountability Project (SERAP) opposed the government move.

It urged President Muhammadu Buhari to shelve his administration’s plan “to borrow N895 billion of unclaimed dividends and funds in dormant accounts, using the Finance Act”.

Economist backs Nigerian government’s plan to borrow from unclaimed dividends
Economist backs Nigerian government’s plan to borrow from unclaimed dividends
Parrot Nigeria
An online news aggregator


Please enter your comment!
Please enter your name here

Latest news

BREAKING: Elumelu’s TNOG acquires 45% of OML 17 from Shell, Total, ENI

        Heirs Holdings, in partnership with Transnational Corporation of Nigeria Plc, on Friday announced the “unconditional acquisition” of a 45...

Signal outage keeps messages from sending

If you’re having trouble sending messages in the secure messaging app Signal, it may be due to technical difficulties...

Uganda’s Bobi Wine rejects poll results, claims victory

Ugandan opposition leader Bobi Wine on Friday claimed victory in presidential elections, rejecting as a “complete sham” early results...

Messi To Earn £170,000 Per Week Bonus Till 2025

          Cash-strapped Barcelona will still have to fork out a massive £170,000 per week to Lionel Messi until 2025 even...

Ohanaeze youths send warning to CAN

          An Igbo socio-cultural organization, Ohanaeze Youth Council, OYC, has warned the Christian Association of Nigeria, CAN, against aiding destabilization...

8,043 COVID-19 cases under Lagos Home Based Care – Commissioner

              The Lagos State government on Friday said about 8,043 active COVID-19 cases are currently being managed under the state’s...


BREAKING! Popular Comedian Dies While Performing On Stage

            Popular Nigerian comedian, , Okobonokpia Okpia Osaretin has died. TRIXX...

Didier Drogba says his marriage has collapsed

          African football icon, Didier Drogba said today that his...
- Advertisement -

You might also likeRELATED
Recommended to you