The Senate on Thursday took a bold step towards strengthening the Unclaimed Funds Trust Fund to benefit owners of unclaimed funds in the nation’s commercial banks.
The unclaimed funds trust fund is a government-managed fund, like the one established by Nigeria’s Finance Act 2020.
The fund makes it possible for unclaimed dividends and dormant account balances to be transferred after a specified period of inactivity—six years or above.
The purpose is to make such funds available for government use, with a proviso that the original owners can claim their money from the government.
The process allows the government to manage and invest the funds in trust for the rightful owners until they are claimed.
Thus, the Senate Committee on Banking, Insurance and Other Financial Institutions screened a presidential nominee, Mrs Obehi Adesuwa Okafor, for co-chair of the Fund.
Okafor, during the screening exercise, assured the committee of productive investment of the fund if confirmed for the position.
The nominee said the fund would be treated as capital preservation, driven by productive investment, with a view to expanding the fiscal landscape of the country.
“My mission with the unclaimed funds is capital preservation. Aside from governance, I will optimise the returns of the unclaimed funds.
“Unclaimed funds are of two-fold; money is deposited in banks’ dormant accounts for at least six years or above.
“Also, the dividends of companies, publicly listed companies on the Nigerian Stock Exchange, shall be handled the same way.
“Those funds, cumulatively, will come under the trust fund, which I will be chairman of.
“We need to productively invest those funds as they come to us, by maximising returns. But we will also manage the risk prudently as we invest the funds.
“Instead of sitting idly, the federal government will have access to it, so as to expand the fiscal landscape of the country,” Okafor told the committee.
Speaking earlier, the two chairmen of the committees, Senators Sani Musa and Tokunbo Abiru, tasked the nominee to justify her nomination by explaining her mission for the unclaimed funds.
After the brief encounter, Musa and Abiru said they would present their report on the screening exercise to the Senate next Tuesday for consideration and possible confirmation of the nominee.
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