The Central Bank of Nigeria (CBN) has told banks to list inactive accounts and unclaimed funds on their websites.
The apex banks hope by this to enhance transparency and return unclaimed money to their rightful owners.
In a Wednesday circular titled “Guidelines on Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria,” the CBN directed banks to publish details of dormant accounts.
Michael Akuka, on behalf of the director of CBN’s financial policy and regulation department, directed banks to display the names associated with these accounts, the account types, and the branches where they’re held.
This information should appear on their industry association’s website for financial institutions without websites.
A dormant account has not seen any activity for at least a year.
The CBN wants to inform customers about their inactive accounts and encourage them to reactivate or claim their funds. It also seeks to address concerns about unclaimed balances accumulating in the banking system.
Balancing Transparency and Data Protection
Some stakeholders have raised concerns about potential breaches of the Nigeria Data Protection Act, 2023 (NDPA). However, the CBN clarified that Section 25(b) of the NDPA allows for justified deviations from its general principles. Additionally, Section 72(ii) of the Banks and Other Financial Institutions Act empowers the CBN to issue guidelines on managing unclaimed funds.
The CBN emphasized that only essential information—the account name, type, bank name, and branch—should be published, and not the account balances. This will protect customer privacy while ensuring transparency.
Banks are also required to publish this information annually in at least two national newspapers or display it at the premises of state and unit microfinance banks.
This directive follows a previous order from July 2024, where the CBN instructed banks to transfer unclaimed balances and funds from dormant accounts to designated accounts at the apex bank. By making these details public, the CBN hopes to reduce the volume of unclaimed funds and ensure they are returned to their rightful owners.
In complying, banks are expected to update their systems and notify customers about the status of their accounts. Customers are encouraged to monitor their accounts regularly and engage with their banks to keep their accounts active.
This directive is in line with global banking best practices, as many countries have similar regulations to manage dormant accounts and unclaimed funds.
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