The Central Bank of Nigeria (CBN) has introduced a new rule that requires all banks and financial institutions to display details of dormant accounts and unclaimed balances on their official websites.
This move is aimed at improving transparency and ensuring that funds in inactive accounts are properly managed.
A dormant account is a bank account that has not been used for at least one year. When an account remains inactive for this period, banks classify it as dormant.
In a circular released on Monday, CBN outlined guidelines on how banks should manage dormant accounts and unclaimed funds. The directive, signed by Michael Akuka from CBN’s financial policy and regulation department, requires banks to display the following details on their websites:
- Name of the account holder
- Type of account
- Name of the bank
- Branch where the account is located
For financial institutions without dedicated websites, CBN has instructed them to publish the information on their respective industry association websites.
Some people have raised concerns about privacy and data protection. However, CBN has assured the public that the directive complies with the Nigeria Data Protection Act (NDPA) 2023.
The bank cited Section 25(b) of the NDPA, which allows certain exceptions for public interest. Additionally, Section 72(ii) of the Banks and Other Financial Institutions Act grants CBN the authority to issue guidelines for managing unclaimed funds.
Apart from publishing on websites, banks must also publish the details of dormant accounts in at least two national newspapers each year. For microfinance banks, this information should be displayed at their physical locations.
This latest directive follows an earlier order from CBN on July 19, 2024, requiring banks to transfer unclaimed balances and dormant funds to designated CBN accounts.
If you have an account that has been inactive for a year or more, it may now be listed on your bank’s website. To avoid this, ensure you perform at least one transaction periodically. If your account is already dormant, you can reactivate it by contacting your bank and fulfilling the required processes.
CBN’s move aims to ensure better financial management and accountability. If you have an inactive account, check with your bank to prevent your details from being published. Stay informed and take action to secure your funds.
