CBN Directs Banks to Disclose Dormant Accounts and Unclaimed Balances to Enhance Transparency

The Central Bank of Nigeria (CBN) has mandated all banks and financial institutions to publicly disclose details of dormant accounts, unclaimed balances, and other financial assets. This directive, aimed at enhancing transparency and accountability, was issued in a circular on February 17, 2025, 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. 

The key provisions require banks to publish the names of account holders, the type of account (such as savings or current), and the branch where the account is domiciled, on their official websites, industry association websites (for institutions without dedicated sites), and in at least two national newspapers annually. 

To address potential breaches of the Nigeria Data Protection Act 2023 (NDPA), the CBN stated that Section 25(b) of the NDPA allows for justified deviations from data protection principles, and Section 72(i) of the Banks and Other Financial Institutions Act empowers the CBN to issue guidelines on unclaimed funds management. 

The CBN also requires banks to provide a mechanism for account holders to reclaim funds before publication, ensuring that customers can reactivate dormant accounts by presenting valid identification and proof of ownership. This initiative aims to ensure unclaimed funds are properly accounted for while enabling rightful owners to reclaim their assets, reflecting CBN’s efforts to improve governance within Nigeria’s financial system; failure to comply with these guidelines may result in regulatory penalties for banks and financial institutions.

Dormant accounts are defined as those inactive for at least one year and include savings, current, term deposits, domiciliary accounts, prepaid card wallets, unclaimed salaries, and other specified financial assets.