The Central Bank of Nigeria (CBN) has issued a clarification regarding the classification of dormant accounts, stating that only accounts inactive for over ten years will be considered dormant and eligible for investment purposes.
This announcement was made in a document titled “FAQs – Guidelines on Dormant Account and Unclaimed Balances – July 25, 2024,” which is now available on the CBN's official website.
The guidelines aim to operationalize Section 72 of the Banks and Other Financial Institutions Act, 2020, and establish a standardized approach for managing dormant accounts and unclaimed balances across financial institutions in Nigeria.
The CBN has indicated that it plans to invest funds from these dormant accounts into Nigerian Treasury Bills and other government securities, managing these funds in trust for the rightful owners. Upon receiving a reclaim request, the CBN will refund the principal along with any accrued interest within ten working days.
According to the CBN, eligible accounts for dormant status include various types of financial instruments such as current and savings accounts, term deposits, domiciliary accounts, prepaid card accounts, and government-owned accounts.
The apex bank emphasized that financial institutions must notify customers immediately and quarterly when their accounts become inactive or dormant.
To facilitate the management of dormant accounts, the CBN will establish a dedicated office supervised by a management committee. Additionally, a specific account known as the “Unclaimed Balances Trust Fund Pool Account” will be created to hold unclaimed balances.
Account owners wishing to reactivate dormant accounts must complete a reactivation form at their financial institutions, providing proof of ownership and valid identification.
Certain accounts, such as those under litigation or regulatory investigation, are exempt from being classified as dormant.
