Drop plan to borrow N895bn unclaimed dividends, dormant account balances-SERAP tells Buhari

The Socio-Economic Rights and Accountability Project (SERAP) has asked President Buhari to drop the reported plan by Nigeria Government to borrow N895bn of unclaimed dividends & funds in dormant accounts using the illegal Finance Act & to ensure respect for citizens’ rights.

SERAP in a statement on Sunday said “we’ll see in court in 14 days if the FG goes ahead with this.” describing the act as illegal.

The Finance Act, signed into law last December, would allow the government to borrow unclaimed dividends and dormant account balances owned by Nigerians in any bank in the country.

SERAP’s letter reads partly: “Borrowing unclaimed dividends and funds in dormant accounts amounts to an illegal expropriation and would hurt vulnerable Nigerians who suffer under reduced public services, and ultimately lead to unsustainable levels of public debt.”

It also said, “The right to property extends to all forms of property, including unclaimed dividends and funds in dormant accounts. Borrowing these dividends and funds without due process of law, and the explicit consent of the owners is arbitrary, and as such, legally and morally unjustifiable

“The borrowing is neither proportionate nor necessary, especially given the unwillingness or inability of the government to stop systemic corruption in MDAs, cut waste, and stop all leakages in public spending. It’s also clearly not in pursuit of public or social interest.

“The borrowing also seems to be discriminatory, as it excludes government’s owned official bank accounts, and may exclude the bank accounts of high-ranking government officials and politicians, thereby violating prohibition of discrimination against vulnerable groups.”