The Central Bank of Nigeria (CBN) has mandated all banks and financial institutions to publish details of dormant accounts and unclaimed balances on their websites.
The move aims to improve financial transparency and ensure rightful owners reclaim their funds.
Under the directive, banks must display the names of authorized account holders, account types, and domiciled branches on their official websites. Financial institutions without websites must publish the information on their association’s portal, the CBN said in a circular signed by Michael Akuka on behalf of the Financial Policy and Regulation Department.
“This directive is in line with Section 72 (ii) of the Banks and Other Financial Institutions Act, which empowers the CBN to regulate unclaimed funds,” the central bank stated. However, concerns over data privacy have emerged, prompting clarifications that the publication aligns with the Nigeria Data Protection Act (NDPA) 2023, which allows justified exemptions.
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In addition to online disclosures, banks must publish the information annually in at least two national newspapers or display it at state and unit microfinance banks. The measure aims to curb financial opacity and prevent funds from remaining idle indefinitely.
A dormant account in Nigeria is defined as one that has seen no activity for at least one year. The regulator’s new directive follows a broader crackdown on financial misconduct, including stricter controls on insider lending. Last week, the CBN gave banks a 180-day deadline to align all insider-related loans with regulatory limits under the Banking and Other Financial Institutions Act (BOFIA) 2020.
The central bank’s push for greater transparency comes amid rising concerns over unclaimed funds in the banking sector. Analysts suggest that billions of naira in dormant accounts remain unaccounted for, with many belonging to deceased individuals or long-inactive customers.
This is a necessary step to ensure accountability and provide depositors a clear pathway to reclaiming their funds. It also forces banks to clean up their books and reconcile legacy account discrepancies.
With growing regulatory scrutiny, financial institutions face increasing pressure to enhance compliance and ensure customers can access their rightful funds. The CBN’s directive underscores a broader strategy to restore confidence in Nigeria’s banking sector and protect depositor interests.
