The Central Bank of Nigeria (CBN) has issued a new directive requiring banks and other financial institutions to publicly disclose details of dormant accounts, unclaimed balances, and other financial assets on their official websites. This move aims to enhance transparency and ensure that account holders can easily access information about their inactive funds.
The guidelines, outlined in a circular titled “Guidelines on Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria,” were signed by Michael Akuka on behalf of the Director of the Financial Policy and Regulation Department. According to the circular, financial institutions must publish the names of authorized account operators, the type of account, and the branch where the account is held. For institutions without websites, the information must be displayed on their association’s website.
The CBN emphasized that this directive aligns with Section 72 (ii) of the Banks and Other Financial Institutions Act, which empowers the apex bank to issue guidelines on the management of unclaimed funds. Additionally, Section 25 (b) of the Nigeria Data Protection Act, 2023, allows for deviations from data protection principles when justified.
In addition to online publication, banks are required to publish the details annually in at least two national daily newspapers or display them on the premises of state and unit microfinance banks. The information to be disclosed includes the account holder’s name, account type, bank name, and branch location.
A dormant account is defined as one that has seen no activity for at least one year. The CBN’s directive is part of broader efforts to improve governance and accountability within Nigeria’s financial sector. Earlier in the week, the banking regulator also mandated commercial banks to reduce insider-related loans to comply with statutory limits within 180 days or face sanctions.
This latest move underscores the CBN’s commitment to addressing long-standing issues such as excessive exposure to politically connected insiders and ensuring compliance with regulatory frameworks. By enforcing stricter guidelines, the CBN aims to foster greater trust and transparency in Nigeria’s banking system.
