Shareholders caution FG against borrowing unclaimed dividend | The Guardian Nigeria News - Nigeria and World News

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Divergent views have continued to trail the Federal Government’s moves to borrow N895 billion from unclaimed dividends and dormant account balances, as shareholders insisted that the decision is a disincentive to investment.

Apparently in dire need for cheap funds to finance its huge fiscal deficit and mitigate further economic crisis arising from the COVID-19 pandemic, the government, had, in the 2020 Finance Act Bill, declared its intention to borrow from unclaimed dividends and dormant account balances under the Unclaimed Dividend Trust Fund.

“Government has forgotten that it had taken over 30% tax from the companies that generated the dividends from profit before tax, and another 10% from the individual investors through withholding tax on any dividends declared by companies. What moral right does the government have to take the money?” “We are appealing to the National Assembly to reject and expunge in its entirety that section of the Bill, because from all intention and purpose the Unclaimed Dividend Trust Fund is designed to rob innocent Nigerians of their hard earned money.

 

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If govt doesn't borrow money, then who else will use it?. In whose hands has this money being with?. This money should have been put into use especially on Housing, which is a sector that has been short funded for too long. But that money should not be idle or in the hands of....

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