Dormant accounts in Nigerian banks to yield N20 trillion to CBN

The Central Bank of Nigeria (CBN) is poised to receive approximately N20 trillion from banks as it takes control of balances in dormant customer accounts.

On Friday, the apex bank mandated that accounts inactive for a minimum of 10 years be transferred to its custody.

CBN plans to raise N20 trillion as it overtakes dormant accounts of Nigerians
Source: UGC

This move aims to standardize the management of these funds and prevent potential misuse.

The initiative is part of new guidelines introduced by the CBN to improve oversight and ensure that these funds are properly managed for the benefit of their rightful owners.

The latest CBN circular has established standardized procedures for managing dormant accounts, unclaimed balances, and financial assets.

It details the steps banks and other financial institutions in Nigeria must follow in administering these funds and assets.

According to the new guidelines, account balances that have remained dormant for 10 years will be moved to a pooled account.

Additionally, banks are required to publish information about all dormant accounts on their websites six months before they become eligible for transfer to the CBN.

According to previous data from the CBN, dormant account balances in Nigerian banks have surpassed N20 trillion.

With nearly 20 million inactive bank accounts in the country, the CBN has instructed banks to transfer funds from these dormant accounts into the “Unclaimed Balances Trust Fund (UBTF) Pool Account” managed by the CBN.

Data from the Nigeria Interbank Settlement System (NIBSS) indicates that, as of the end of the first quarter this year, there are 19.799 million dormant bank accounts, making up 6.81 percent of all bank accounts in Nigeria.

Source: Legit.ng