The Central Bank of Nigeria (CBN) is set to have no less than N20 trillion transferred from the banks to its coffers when it takes over the balances in dormant accounts of customers.
The apex bank, on Friday, ordered that accounts dormant for at least 10 years be transferred to its custody, aiming to standardise the management of these funds and curb potential abuses.
This initiative is part of new guidelines introduced by the CBN to enhance oversight and ensure these funds are managed appropriately for the benefit of their rightful owners.
Earlier data released by the CBN had indicated that the estimated dormant account balances in Nigerian banks have accumulated to over N20 trillion.
With nearly 20 million bank accounts that are inactive in the country, the CBN directed banks to begin transferring funds in dormant accounts into the “Unclaimed Balances Trust Fund (UBTF) Pool Account domiciled with it.
Data from the Nigeria Interbank Settlement System (NIBSS) show that there are 19.799 million bank accounts that are dormant as at the end of the first quarter of this year, representing 6.81 per cent of all bank accounts in the country.
This is according to the just released Guidelines on Management of Dormant Accounts, Unclaimed Balances and Other Financial Assets in Banks and Other Financial Institutions in Nigeria. A circular signed by the acting Director, Financial Policy and Regulation Department , John Onojah, noted that the guideline amongst others, standardised the management of dormant accounts, unclaimed balances and financial assets, and outlines the procedure for the administration of these balances, funds, and assets by banks and other financial institutions in Nigeria.
Consequently, account balances in bank accounts that have been dormant for a period of 10 years will be transferred into the pool account, however, banks are expected to publish on their websites, details of all dormant accounts, six months prior to their eligibility for transfer to CBN.
The guideline stated that eligible accounts are dormant accounts balances that have remained with the FIs for a period of 10 years and beyond. These include current, savings and term deposits in local currency as well as domiciliary accounts.
Likewise, deposits towards the purchase of shares and mutual investments; prepaid card accounts and wallets; Government Owned Accounts; proceeds of uncleared and unpresented financial instruments belonging to customers or non-customers of financial institutions, unclaimed salaries and wages, commissions, and bonuses will be eligible for transfer.
Others include proceeds of stale local and/or foreign currency drafts not presented for payment by beneficiaries; funds received from a correspondent bank without sufficient details as to the rightful beneficiary and/or a recall of funds made to the remitting bank to which the Nigerian bank account had not been debited; a judgment debt for which the judgment creditor has not claimed the amount of judgment award; and any other deposits or financial assets that may be designated by CBN.
However, accounts that are subject of litigation; a judgment debt for which the judgment creditor has not claimed the amount of judgment award and the case is still active in Court; accounts under investigation by a regulatory authority or law enforcement agency; and encumbered accounts including, but not limited to, collaterals and liens are exempted.
