In a significant policy shift, the Central Bank of Nigeria (CBN) has mandated all banks and financial institutions to publicly disclose details of dormant accounts, unclaimed balances, and other financial assets.
The directive, outlined in a circular dated February 17, 2025, and signed by Michael Akuka on behalf of the director of the Financial Policy and Regulation Department, seeks to enhance transparency and ensure the proper management of unclaimed funds within Nigeria’s banking sector.
Entitled Guidelines on Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria 2024, the circular stipulates that financial institutions must publish specific details about dormant accounts, including the names of authorized account operators, the account type, and the branch where the account is domiciled. Banks are instructed to display this information prominently on their official websites.
For other financial institutions (OFIs) without individual websites, the directive requires publication on the website of their respective industry association. Additionally, the CBN mandates that this information be published annually in at least two national daily newspapers. State and unit microfinance banks are also required to display these details on their premises, ensuring public accessibility.
By invoking these legal provisions, the CBN affirms that the directive aligns with existing laws and serves the public interest by promoting transparency and accountability in managing dormant accounts and unclaimed balances.
“The Guidelines on Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria 2024 requires banks and other financial institutions to publish on their websites the names of individuals authorized to operate the accounts, the type of account, and the address of the branch where the account is domiciled. For other financial institutions (OFIs) without websites, the publication should be made on their association’s website,” the circular reads.
A dormant account is generally defined as one that has remained inactive for a specified period, often one year. The CBN’s directive aims to reduce the prevalence of such accounts and ensure that unclaimed funds are effectively managed and returned to their rightful owners.
This initiative is part of the CBN’s broader efforts to instil greater transparency and accountability within Nigeria’s financial system. By mandating the disclosure of dormant account details, the apex bank seeks to encourage account holders to actively engage with their financial assets and reduce the accumulation of unclaimed funds.
Moreover, the policy is designed to foster public trust in the banking system by ensuring financial institutions are transparent about the status of accounts and the management of unclaimed assets. This move is expected to prompt financial institutions to enhance their customer outreach and engagement strategies, ensuring that account holders are regularly informed about the status of their accounts.
