CBN Orders Banks to Publish Dormant Accounts and Unclaimed Balances: What You Need to Know

 CBN Orders Banks to Publish Dormant Accounts and Unclaimed Balances: What You Need to Know

In a bold move to enhance financial transparency and ensure rightful owners reclaim their funds, the Central Bank of Nigeria (CBN) has directed all banks and financial institutions to publicly disclose details of dormant accounts and unclaimed balances. This landmark directive mandates financial institutions to publish the names of account holders, account types, and bank branches where these accounts are domiciled.



New CBN Guidelines on Dormant Accounts and Unclaimed Funds

As part of its newly issued Guidelines on the Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria 2024, the CBN seeks to standardize the handling of inactive accounts while ensuring unclaimed funds remain accessible to their rightful owners.

According to the guidelines:

  • Banks must publish the details of dormant accounts on their official websites.
  • For banks without online platforms, the information must be displayed on the website of their respective banking associations.
  • Financial institutions are required to publish this information annually in at least two national newspapers or, in the case of state and microfinance banks, display the details prominently at their premises.

This directive is aimed at improving transparency and preventing the mismanagement of unclaimed funds within Nigeria’s banking sector.

How the New Policy Affects Dormant Accounts

A dormant account is defined as one that has remained inactive for a specified period, usually over one year, without any transactions initiated by the account holder. If an account remains dormant for more than ten years, the funds are transferred to the Unclaimed Balances Trust Fund Pool Account, where they are invested in government-backed securities such as Nigerian Treasury Bills.



However, the CBN has assured customers that these funds will always remain accessible. Upon verification, account holders or their legal beneficiaries can reclaim their balances within ten working days.

Data Protection and Legal Considerations

Concerns have arisen regarding data privacy and whether this directive breaches the Nigeria Data Protection Act (NDPA) 2023. However, the CBN clarified that:

  • Section 25(b) of the NDPA allows deviations where justified.
  • Section 72(i) of the Banks and Other Financial Institutions Act grants the CBN the authority to regulate unclaimed funds.

To align with data protection regulations, only essential details such as the account holder’s name, account type, bank name, and branch location will be disclosed. No sensitive financial information will be shared.

Why This Move Matters

This initiative is a game-changer in Nigeria’s financial ecosystem. By enforcing transparency and compelling banks to disclose dormant accounts, the CBN aims to:

  • Reunite unclaimed funds with their rightful owners.
  • Boost confidence in the banking sector.
  • Minimize fraudulent claims on unclaimed funds.
  • Ensure proper accountability in financial institutions.

How to Reactivate a Dormant Account

If you suspect your account is dormant, take the following steps:

  1. Visit Your Bank: Provide valid identification and request reactivation.
  2. Update Your Information: Ensure your contact details are up to date to prevent future dormancy.
  3. Perform Transactions Regularly: A simple deposit, withdrawal, or transfer can keep your account active.

For those who have unclaimed balances, the CBN has outlined a seamless retrieval process, ensuring that funds remain accessible without unnecessary bureaucratic delays.

The CBN’s latest directive represents a significant step toward financial transparency and customer protection in Nigeria’s banking sector. By mandating the disclosure of dormant accounts and ensuring the proper management of unclaimed funds, the apex bank is reinforcing its commitment to a fair, accountable, and transparent financial system.

Account holders are encouraged to stay vigilant, monitor their bank accounts regularly, and reclaim any unclaimed balances before they are transferred to the Unclaimed Balances Trust Fund. With this initiative, the CBN is setting a precedent for better financial governance in Nigeria.

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