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The Central Bank of Nigeria (CBN) has clarified that only accounts inactive for over 10 years are classified as dormant and will be used for investment purposes.
A dedicated office will manage these dormant accounts and unclaimed balances, as outlined in their document titled “FAQs – Guidelines on Dormant Account and Unclaimed Balances – July 25, 2024.”
The guidelines, part of the Banks and Other Financial Institutions Act, 2020, aim to standardize the management of dormant accounts and unclaimed balances.
According to Yemi Cardoso, during the weekend, CBN may invest these funds in Nigerian Treasury Bills and other government securities, managing them in trust and refunding the principal and accrued interest to beneficiaries within 10 working days of a reclaim request.
Eligible dormant accounts include current, savings, term deposits, domiciliary accounts, deposits for shares and mutual investments, prepaid card accounts, and government-owned accounts.
Financial institutions must notify customers when their accounts become inactive or dormant.
The CBN will create an “Unclaimed Balances Trust Fund Pool Account” to manage unclaimed balances, with specific exemptions such as accounts under litigation or regulatory investigation as the policy aims to protect dormant accounts from fraud.
