The Central Bank of Nigeria (CBN) has announced new guidelines for the management of dormant accounts, unclaimed balances, and other financial assets in banks and financial institutions.
According to the guidelines, next-of-kin, legal representatives, or beneficial owners can now claim unclaimed balances in dormant accounts by submitting applications to financial institutions.
The CBN has the authority to manage dormant accounts and unclaimed funds, and will receive and manage these funds in trust for account holders. A dedicated office, supervised by a management committee, will oversee this process. Unclaimed funds will be placed in the Unclaimed Balances Trust Fund (UBTF) Pool Account and invested in treasury bills and other securities.
To claim, account owners must visit financial institutions to complete a reclaim form, provide evidence of ownership, a sworn affidavit, and valid ID. Financial institutions will verify the claim and send it to the CBN within 10 days. The CBN will refund the money within 10 days of receiving the request.
The guidelines, which replace those issued in 2015, standardize the management of dormant accounts, unclaimed balances, and financial assets. According to John Onojah, Acting Director, Financial Policy and Regulation Department,
“The guidelines standardise the management of dormant accounts, unclaimed balances and financial assets, and outlined the procedure for the administration of these balances, funds, and assets by banks and other financial institutions in Nigeria.”
The CBN has also directed banks to notify account owners when an account becomes inactive or dormant and then on a quarterly basis. If a financial institution’s license is withdrawn, the Nigeria Deposit Insurance Corporation (NDIC) will manage dormant accounts.