The Central Bank of Nigeria (CBN) has mandated all banks and financial institutions to publicly disclose details of dormant accounts, unclaimed funds, and other financial assets on their official websites.
This directive was outlined in a circular titled “Guidelines on Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria.” The document, signed by Michael Akuka on behalf of the Director of the Financial Policy and Regulation Department, establishes the compliance framework for financial entities.
According to the CBN’s instructions, institutions must publish the names of individuals authorized to operate these accounts, along with the account type and the branch where it is maintained.
For other financial institutions (OFIs) without dedicated websites, the directive requires them to share the relevant information through their industry association’s website.
The Directive
“In furtherance thereof, and in response to inquiries from stakeholders regarding the possible breach of the Nigeria Data Protection Act, 2023 (NDPA), banks and other financial institutions are required to note the following,” the CBN stated.
- Section 25 (b) of the NDPA permits justifiable deviations from the general principles of the Act. Additionally, Section 72 (ii) of the Banks and Other Financial Institutions Act mandates the Central Bank of Nigeria to issue guidelines on the administration of unclaimed funds in banks and other financial institutions.
- Information to be published on banks’ websites and the association’s website (where applicable) shall include the name of the account holder, the type of account, the name of the bank, and the branch where the account is domiciled only.
The Central Bank of Nigeria (CBN) has further directed that details of dormant accounts, unclaimed balances, and other financial assets must be published annually in at least two national newspapers. Alternatively, state and unit microfinance banks are required to display this information on their premises.
What You Should Know
- A dormant account refers to any bank account that has remained inactive for at least one year.
- Earlier this week, Nigeria’s banking regulator issued a sweeping directive compelling commercial banks to adhere to stricter insider lending limits or face regulatory sanctions.
- In a letter to banks, the CBN set a 180-day deadline for financial institutions to rectify all insider-related credit facilities exceeding the statutory limits outlined in the Banking and Other Financial Institutions Act (BOFIA) 2020.
This measure is part of broader efforts to strengthen governance, limit excessive exposure to politically connected individuals, and address persistent regulatory lapses within Nigeria’s financial sector.
The CBN has now made it clear: banks must ensure all insider-related credit exposures comply with regulatory limits within six months.
At the core of this directive is Section 19 of BOFIA 2020, which imposes a cap on insider lending as a percentage of a bank’s total loan portfolio. In recent years, some banks have failed to comply with this provision, prompting the CBN’s latest intervention.s have received CBN approvals for insider-related facilities without clear timelines for compliance, leaving room for regulatory arbitrage.
