We’ll see in court in 14 days if the FG goes ahead with this. SERAP warns

The Socio-Economic Rights and Accountability Project (SERAP) sent a letter addressed to President Muhammadu Buhari imploring him to use his leadership position ‘to immediately drop the Federal Government’s decision to borrow N895 billion of unclaimed dividends and funds from dormant accounts using the patently unconstitutional and illegal Finance Act 2020 and to ensure full respect for Nigerians’ right to have their say.

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

The letter sent yesterday, read in part: “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

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 the government’s owned official bank accounts and may exclude the bank accounts of high-ranking government officials and politicians, thereby violating the prohibition of discrimination against vulnerable groups.

in essence, “Instead of pushing to borrow unclaimed dividends and funds from dormant accounts, the government should move quickly to reduce governance costs, ensure the review of jumbo salaries and allowances for all high-ranking political office holders, and address the systemic corruption in MDAs, as well as improve transparency and accountability in public spending.”

“If we have not heard from you about the steps that are being taken in this direction by then, the SERAP Registered Trustees shall take all appropriate legal action to compel your government to implement these recommendations in the public interest and to promote transparency and accountability in public spending.