In a major change, the Central Bank of Nigeria (CBN) has ordered banks and financial institutions to disclose dormant accounts, unclaimed balances, and other financial assets.
The circular, signed by Michael Akuka on behalf of the Financial Policy and Regulation Department director on February 17, 2025, aims to improve transparency and unclaimed fund management in Nigeria’s banking sector.
The Circular on Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria 2024 requires financial institutions to publish dormant account details, including authorized account operators, account type, and branch.
The official websites of banks must clearly show this information.
The guideline requires posting on industry association websites for other financial institutions (OFIs) without websites.
Additionally, the CBN requires at least two national daily newspapers to report this information annually.
State and unit microfinance banks must post these facts on their premises for public access.
The CBN asserts that the instruction is legal and promotes openness and accountability in managing dormant accounts and unclaimed balances in the public interest by utilizing these legal grounds.
Dormant accounts are usually idle for a year. The CBN’s directive aims to minimize such accounts and effectively manage and refund unclaimed funds.
This project is part of the CBN’s attempts to increase financial openness and accountability in Nigeria.
By disclosing dormant account details, the apex bank hopes to get account holders involved in their finances and eliminate unclaimed monies.
By making banks honest regarding account status and unclaimed assets, the strategy promotes public trust in the banking sector.
This measure is likely to drive financial institutions to improve consumer outreach and engagement, keeping account holders informed of account status.