The Central Bank of Nigeria (CBN) announced that holders of dormant accounts will earn interest on their deposits, which will be invested in Treasury bills.

The Central Bank of Nigeria (CBN) plans to allocate funds from dormant accounts into treasury bills, bonds, and other securities. Account holders will be able to receive their principal and accrued interest within 10 days upon request.

This information was disclosed in a circular titled ‘Guidelines on the Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Financial Institutions in Nigeria,’ issued by the CBN on Friday.

The CBN indicated that if an extension of the timeline is necessary, the requesting bank must be notified with a detailed explanation for the delay.

The central bank announced the establishment of a designated account named ‘Unclaimed Balances Trust Fund (UBTF) Pool Account’ to manage and store unclaimed funds from eligible dormant or inactive accounts.

Additionally, the central bank will keep detailed records of the beneficiaries associated with the unclaimed balances held in the UBTF Pool Account.

Banks to bear cost of maintenance

The CBN circular stipulates that banks will now be responsible for the costs associated with maintaining dormant or inactive accounts and for reaching out to the affected account holders. This represents a shift from the previous practice, where account holders bore these expenses.

Furthermore, the circular mandates that banks must submit quarterly reports on dormant accounts in a specified format to the Banking Supervision Department (BSD) and the Other Financial Institutions Supervision Department (OFISD) of the CBN, as applicable.

The central bank requires banks and financial institutions to inform account holders in writing via agreed-upon channels—such as email, text messages, and letters—immediately once accounts become inactive or dormant. Additionally, they must provide these notifications on a quarterly basis thereafter.

Banks are required to continue listing dormant account balances as deposit liabilities, with such balances accruing interest until they are transferred to the CBN. They must also maintain a register for funds transferred to the CBN to facilitate reclaim and auditing processes. Additionally, banks must publish details of all dormant accounts on their websites six months before these accounts are eligible for transfer to the CBN.

Reclaim of unclaimed balances

Account holders can recover their unclaimed balances by visiting any branch or office of the bank and completing an ‘Asset Reclaim Form’.

To reactivate the account, the account owner or beneficial owner will need to provide proof of account ownership, a valid identification, evidence of current residence, and an affidavit confirming the accuracy of the information.

Also The interest rate applied to unclaimed balances will be established periodically by the CBN.

The circular states that the profit and loss ratio for unclaimed balances held by Non-Interest Banks will be periodically set by the CBN.