The Central Bank of Nigeria (CBN) has announced plans to create a dedicated office for managing dormant accounts and unclaimed balances. This initiative was detailed in the CBN’s recently issued document, “FAQs – Guidelines on Dormant Account and Unclaimed Balances – July 25, 2024.”
The document states, “The CBN shall establish a dedicated office for this purpose. A Management Committee will supervise the office.”
Interest Release on Reactivated Accounts
The CBN will manage dormant funds in trust, ensuring that the principal and any accrued interest are refunded to beneficiaries within ten working days of receiving a reclaim request from the financial institution. The document notes, “The interest payable shall be at a rate determined by the CBN from time to time. For non-interest banks, the CBN will also determine the profit and loss on unclaimed balances.”
The CBN further clarified, “The CBN will refund the principal and any interest on the invested funds to the beneficiaries within ten (10) working days of receiving a reclaim request from the FI.”
Notification and Reactivation of Dormant Accounts
Financial institutions must notify customers immediately and quarterly when their accounts become inactive or dormant. To reactivate a dormant account, account owners must complete a reactivation form at their financial institution, providing evidence of ownership and valid identification.
Transfer of Unclaimed Balances
For unclaimed balances, financial institutions must transfer these funds to the CBN once they have been dormant for ten years.
Key Points to Know
The CBN may invest funds from dormant accounts and unclaimed balances in Nigerian Treasury Bills (NTBs) and other government securities. This is part of the newly released “Guidelines on Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria.”
The CBN will create and manage a dedicated account, the “Unclaimed Balances Trust Fund (UBTF) Pool Account,” to house unclaimed balances.
Eligible Accounts for Dormant Status
Eligible accounts for dormant status include:
- Current accounts
- Savings accounts
- Term deposits in local currency
- Domiciliary accounts
- Deposits for shares and mutual investments
- Prepaid card accounts and wallets
- Government-owned accounts
Exempt Accounts
Some accounts are exempt from being considered dormant, such as:
- Accounts under litigation
- Judgment debts under active court cases
- Accounts under regulatory investigation
- Encumbered accounts like collaterals and liens
CBN Governor Yemi Cardoso justified this policy, stating that dormant accounts are more susceptible to fraud. The latest policy aims to safeguard the funds in dormant accounts.
