Nigeria urges consumers to reactivate dormant accounts, get unclaimed dividends

*The government is seeking to utilise unclaimed dividends and dormant account balances of up to six years to mitigate Nigeria’s economic challenges caused by the COVID-19 pandemic

*If you have bank balances and unclaimed dividends that are not six years and above, this has no implication on you ─Presidential Aide

Emmanuel Akosile | ConsumerConnect

Following concerns raised by several Nigerian and foreign investors on the implications of the Finance Act 2020 for capital markets and the financial services sector of the economy, the Fiscal Policy Reforms Committee has advised investors with unclaimed dividends and dormant account balances to start the process of claiming them if they are not up to six years.

Bode Oyetunde, Senior Special Assistant to the President on Finance and Fiscal Matters and Secretary of the Committee, gave the advice at the Finance Act 2020 Stakeholder Engagement webinar, Thursday, February 4.

The forum was organised to share perspectives on the implications of the Finance Act 2020, for capital markets and the financial services sector in the economy, agency report said.

Already, there have been concerns Nigerians on the provision, as the government is seeking to utilise unclaimed dividends and dormant account balances of up to six years.

The move is reportedly an attempt to mitigate Nigeria’s economic challenges resulting from the damaging effects of the COVID-19 pandemic.

The funds realised are to be put in a trust fund to be managed by the Debt Management Office (DMO), according to provisions of the Act.

The presidential aide on Finance and Fiscal Matters said: “If you have bank balances and unclaimed dividends that are not six years and above, this has no implication on you.

“If you have unclaimed dividends in a company, that is not a public limited one listed on the Nigerian Stock Exchange, you have no issue.

“If you do, you can start the process of taking back your unclaimed dividends and if it is a bank balance, go and get your bank balances.

Oyetunde stated: “All these will be done in consultation with the Bankers’ Committee, CBN, and the banks for the unclaimed bank balances and unclaimed dividends, registrars, Securities and Exchange Commission, other regulatory bodies.”

He, however, assured consumers that the process would be transparent.

The Federal Government has “Nigerians’ best interests at heart” in its efforts at deploying resources to deal with the challenges it faces.”

He noted: “The government would make sure to observe and protect people’s constitutional rights, even though the management of the funds collected would remain the responsibility of the DMO.”

On the sovereign debt management, however, he stated this would never be ceded to the private sector, emphasising that the laws of the country and the constitution allow the President to appoint ministers for such sovereign matters, report said.

He further stressed that “Sovereign Debt Management is the responsibility of the minister responsible for finance, and it is the responsibility of the government.

“There is nowhere in the world, I am aware of, where Sovereign Debt Management is ceded to the private sector.

“We have the DMO established by law, and it is supposed to be the minister responsible for finance that will handle his or her duties in the emergence of any debt, and in terms of management of the funds that will be operated by the DMO.

Oyetunde added that the monies claimed by the Federal Government would be used to support the budget deficit.

He added: “We are using the money to support the budget deficit, in the budget, we have four items: The revenue, the expenditure, which you deduct from the revenue, most countries have debit financing, so it is more expenditure than revenue, so there is the deficit and finally how we will finance the deficit and some other items.

“So, this fund is going to support the deficit, how we fund the deficit financing and that is going to be everything in the budget.

“I am sure as things progress and our fiscal position improves so that we now have sufficient revenue sources, then it is possible for the Ministry of Finance to look at a framework, whereby we dedicate this money to this activity.”

In a related development, Albert Folorunsho, a tax expert and member, Fiscal Policy Reforms Committee, has assured that a number of dormant accounts were already being reactivated.

Folorunsho noted: “Quite a number of dormant accounts are being reactivated as I speak, and the banks are already contacting the owners, for those who are still alive, and most are reactivating their accounts.

He believes “at the end of the day, not much will be transferred to the Unclaimed Dividends Trust Fund,” according to report.