Central Bank of Nigeria Mandates Banks to Publish Details of Dormant Accounts and Unclaimed Balances
The Central Bank of Nigeria (CBN) has issued a directive requiring all banks and financial institutions to publish details of dormant accounts, unclaimed balances, and other financial assets on their respective websites.
This directive was 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,” signed by Michael Akuka on behalf of the Director of the Financial Policy and Regulation Department of the CBN.
Key Requirements of the Directive
According to the CBN, financial institutions must publicly display the names of individuals authorized to operate the accounts, the type of account, and the branch where the account is domiciled. For other financial institutions (OFIs) without websites, the information must be published on their association’s website.
Addressing concerns about compliance with the Nigeria Data Protection Act, 2023 (NDPA), the CBN clarified that:
- Section 25(b) of the NDPA allows justified deviations from its general principles.
- Section 72(ii) of the Banks and Other Financial Institutions Act (BOFIA) empowers the CBN to regulate unclaimed funds in financial institutions.
As part of this directive, banks must also publish this information annually in at least two national newspapers or on the premises of state and unit microfinance banks.
Broader Implications
The move is aimed at improving transparency, addressing governance gaps, and reducing financial risks linked to politically exposed persons and influential insiders. The CBN has set a six-month deadline for banks to ensure all insider-related exposures comply with regulatory limits.
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