The Socio-Economic Rights and Accountability Project, (SERAP), has sent an open letter to President Muhammadu Buhari regarding his government’s move to borrow unclaimed dividends and dormant account balances owned by Nigerians in any bank in the country.
President Buhari has signed a Finance Act, last December, which would allow the government to borrow unclaimed dividends and dormant account balances owned by Nigerians in any bank in the country.
Reacting to the move, SERAP has called on Buhari “to promptly drop the plan by the Federal Government to borrow about N895bn of unclaimed dividends and funds in dormant accounts using the patently unconstitutional and illegal Finance Act, 2020, and to ensure full respect for Nigerians’ right to property.”
SERAP, in a letter dated 9 January 9, 2021 and signed by its deputy director Kolawole Oluwadare said, “The right to property is a sacred and fundamental right.
According to SERAP, “The borrowing is neither proportionate nor necessary, especially given the unwillingness or inability of the government to stop systemic corruption in ministries, departments and agencies (MDAs), cut waste, and stop all leakages in public expenditures. The borrowing is also clearly not in pursuit of public or social interest.”
SERAP noted that while targeting the accounts of ordinary Nigerians, the Finance Act exempts official bank accounts owned by the federal government, state government or local governments or any of their ministries, departments or agencies. According to the Finance Act, the operation of the Trust Fund is to be supervised by the Debt Management Office (DMO) and governed by a governing council chaired by the finance minister and a co-chairperson from the private sector appointed by the President.
