By Lekan Sowande, Abuja.
The Presidential nominee for the co-chairmanship position on the board of Unclaimed Funds Trust Fund, Mrs Obehi Adesuwa Okafor, has pledged to the Senate a productive investment of the fund, if her appointment is confirmed.
The nominee gave the assurance during her screening by the Senate Committees on Finance, Banking, Insurance and other Financial Institutions on Thursday .
An unclaimed funds trust fund is a government-managed fund, like the one established by Nigeria’s Finance Act 2020, where unclaimed dividends and dormant account balances are transferred after a specified period of inactivity (e.g., six years).
The purpose is to make these funds available for government use, with the stipulation that the original owners can claim their money from the government later, although the process for claiming them can be unclear.
While the government manages and potentially invests the funds, the funds are held in trust for the rightful owners until they are claimed.
Explaining her mission for the fund, Mrs Okafor said it shall be capital preservation driven by productive investment all for expanding the fiscal landscape of the country .
“My mission with the unclaimed funds is capital preservation. Asides from governance, I will optimize the returns of the unclaimed funds. Unclaimed funds are of two-fold.
“Money is deposited in banks, dormant accounts for at least six years and above . Also, the dividends of companies, publicly listed companies, on the Nigerian Stock Exchange, six years and above.
“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, we… maximize returns, but we also manage the risk prudently as we invest the funds.
“Instead of sitting idly, the federal government will have access to it to expand the fiscal landscape of the country.”
Earlier before her presentation, the Chairmen of the Committees , Senator Mohammed Sani Musa (Niger East) and Senator Adetokunbo Abiru (Lagos East) , tasked her to justify her nomination by explaining her mission for the unclaimed funds.
Report on the screening exercise shall be presented to the Senate by the joint committee on Tuesday next week for final consideration and appointment confirmation.
Victoria Ibanga