Funds in dormant accounts, assets, and unclaimed balances held by banks and other financial institutions in Nigeria will now be transferred to an account managed by the Central Bank of Nigeria (CBN).
The CBN announced this change through revised guidelines released over the weekend for managing dormant accounts, unclaimed balances, and other financial assets. This update follows a comprehensive review and consultation with relevant stakeholders, and it operationalizes Section 72 of the Banks and Other Financial Institutions Act (BOFIA) 2020, replacing previous guidelines issued in October 2015.
John Onojah, the Acting Director of the Financial Policy and Regulation Department, stated that the new guidelines standardize the management of dormant accounts, unclaimed balances, and financial assets. They also outline the procedure for the administration of these balances, funds, and assets by banks and other financial institutions in Nigeria.
“The modalities for the transfer of the relevant balances, funds, and assets to the CBN, along with the revised templates for the rendition of quarterly returns to the Banking Supervision Department or Other Financial Institutions Supervision Department (as applicable), will be communicated subsequently,” the statement read. “These guidelines supersede the Guidelines on the Management of Dormant Accounts and Other Unclaimed Funds by Banks and Other Financial Institutions in Nigeria, issued in October 2015, and take effect immediately.”
These measures aim to streamline and enhance the management of dormant and unclaimed financial assets in Nigeria’s banking sector.
In April, the CBN noted that eligible accounts for this transfer include current, savings, and term deposit accounts, domiciliary accounts, prepaid card accounts, unclaimed salaries and wages, as well as proceeds from unpresented financial instruments and stale drafts. These funds will be invested in government securities such as Treasury Bills and can be returned to beneficiaries upon notice within ten days. The primary objectives of these guidelines are to identify and reunite dormant accounts and unclaimed balances with their owners, hold these funds in trust, standardize the management of such accounts, and establish procedures for reclaiming warehoused funds.
