The Central Bank of Nigeria (CBN) has issued a directive requiring all banks and financial institutions to publicly disclose details of dormant accounts and unclaimed balances on their official websites, marking a significant step toward financial transparency and consumer protection in the country’s banking sector.
According to the circular signed by Michael Akuka on behalf of the director of CBN’s financial policy and regulation department, financial institutions must now publish key information about inactive accounts, including the names of authorized operators, account types, and branches where the accounts are domiciled.
The regulatory body defined a dormant account as one that has remained inactive for at least one year, with the new regulation aimed at helping account owners or their rightful beneficiaries identify and reclaim funds that have been sitting unused in the banking system.
Banking industry analyst Adewale Ogunleye explained the significance of this development: “This directive addresses a longstanding issue in Nigeria’s financial sector. Billions of naira sit unclaimed in dormant accounts, often because account holders have passed away, relocated, or simply forgotten about these accounts. Making this information publicly accessible increases the likelihood of reuniting these funds with their rightful owners.
For other financial institutions (OFIs) without dedicated websites, the CBN has mandated that the required information be published on the website of their respective industry associations. Additionally, the apex bank has clarified that this disclosure does not violate the Nigeria Data Protection Act of 2023 (NDPA), citing specific legal provisions that permit such disclosures.
“Section 25(b) of the NDPA permits justifiable deviations from the general principles of the Act. Also, 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,” the CBN circular stated.
To balance transparency with privacy concerns, the CBN has specifically limited the information to be published. The public disclosures will include only the name associated with the account, the type of account, the name of the bank, and the branch where the account is domiciled. More sensitive details like account numbers, balances, or transaction histories will not be part of the public disclosure.
Financial inclusion expert Dr. Funmilayo Adekoya commended the move: “This strikes an effective balance between transparency and privacy. By making just enough information available for legitimate owners to recognize their accounts without compromising security details, the CBN is taking a pragmatic approach to addressing the unclaimed funds challenge.
Beyond website publications, the CBN also mandated annual disclosures in at least two national daily newspapers. For smaller institutions like State and Unit microfinance banks, posting the information on their premises will suffice, ensuring that the information reaches communities with limited internet access.
Banking compliance officer Ibrahim Mohammed explained the operational implications: “Financial institutions now face the significant task of compiling and regularly updating this information. While the directive creates additional work, it ultimately serves the public interest and could reduce the administrative burden of maintaining dormant accounts over the long term.”
Consumer rights advocates have welcomed the development, noting that many Nigerians, particularly those who have lost family members, have struggled to identify and access accounts opened by deceased relatives. The public disclosure requirement is expected to simplify this process significantly.
Financial consumer protection specialist Chika Nwosu noted: “This is a win for financial consumers. Many families have experienced the frustration of knowing a relative had bank accounts but being unable to locate them after their passing. This transparency measure empowers families to identify and claim what is rightfully theirs through proper legal channels.
Banking sector analysts estimate that billions of naira remain unclaimed in dormant accounts across Nigeria’s financial system. These funds represent not just personal wealth but also economic resources that could be put to productive use if properly claimed and reintegrated into the economy.
Economist Professor Olusegun Adeleke put the situation in context: “The scale of unclaimed funds in Nigeria’s banking sector is substantial. By increasing the visibility of these accounts, the CBN is not just serving individual account holders but also promoting broader economic efficiency by potentially reducing the volume of idle funds in the system.
The CBN’s directive aligns with international best practices in financial regulation, where transparency and consumer protection are increasingly prioritized. Similar measures have been implemented in countries like the United Kingdom, Australia, and Canada, often with positive results in reuniting unclaimed funds with their owners.
International banking consultant Nnamdi Okafor observed: “Nigeria is following a global trend toward greater transparency in financial services. The experience in other jurisdictions suggests that public disclosure requirements significantly increase the rate at which dormant accounts are identified and claimed by rightful owners or their heirs.
For bank customers, the directive offers a new avenue to track potentially forgotten accounts. Individuals who have changed addresses, contact information, or who may have inherited rights to accounts can now more easily identify relevant accounts by reviewing the published information.
Banking customer service expert Folake Adebanjo advised: “Customers should regularly check these publications, especially if they suspect they or their family members might have dormant accounts. Having the right documentation ready, such as identification papers, death certificates where applicable, and any relevant court orders, will streamline the claiming process.
As implementation begins, financial institutions are expected to establish clear procedures for verifying claims and transferring funds to legitimate owners. The CBN’s circular marks the beginning of what is likely to be an ongoing effort to address the issue of unclaimed funds in Nigeria’s financial system, potentially benefiting thousands of account holders or their heirs in the coming years.
