The Central Bank of Nigeria (CBN) has set in motion a sweeping financial transparency initiative aimed at bringing dormant bank accounts and unclaimed balances into the public eye. In a move that is expected to shake up the banking sector, the CBN has ordered all banks and financial institutions in Nigeria to publish details of inactive accounts and unclaimed funds on their official websites.
In a circular issued on Monday, February 19, 2025, the CBN laid out new guidelines under the title “Guidelines on Management of Dormant Accounts, Unclaimed Balances and Other Financial Assets in Banks and Other Financial Institutions in Nigeria.” This directive is part of a broader strategy to enhance transparency in the financial sector and ensure that Nigerians are fully informed about the state of their dormant accounts.
A Bold Step Towards Financial Transparency
Under the new rules, banks are required to make available key information about dormant accounts, including the account holder’s name, the type of account, and the branch where the account is domiciled. For those financial institutions that lack dedicated websites, the CBN has instructed that the details be published on the websites of their respective industry associations.
“The aim is to bring transparency to the financial system, allowing Nigerians to track and claim any unclaimed balances that might be lying dormant in the banks,” explained Michael Akuka, the official who signed the circular on behalf of the Director of CBN’s Financial Policy and Regulation Department.
This move is significant because it provides Nigerians with a chance to reclaim funds that they may have forgotten or lost track of. Dormant accounts, which are defined as accounts that have remained inactive for a minimum of one year, often contain substantial funds. According to the CBN, this measure will help unlock billions of naira in dormant funds and unclaimed balances that could benefit the national economy.
“The new directive ensures that banks and financial institutions remain accountable and that dormant funds are not hidden from the public eye,” Akuka added.
The Public Disclosure Requirement
The circular also specifies that financial institutions must ensure the details of these accounts are published on their websites and in at least two national daily newspapers. Furthermore, microfinance banks are instructed to display this information at their premises. This annual publication will ensure continued visibility for dormant funds and unclaimed balances, creating a sense of urgency and encouraging claimants to come forward.
The CBN’s directive follows an earlier order issued on July 19, 2024, which mandated that unclaimed balances and dormant funds be transferred to designated accounts controlled by the Central Bank. The CBN’s strict approach to managing unclaimed funds underscores its commitment to ensuring that the Nigerian banking system remains transparent, efficient, and accountable.
Concerns About Privacy and Data Protection
As with any policy that mandates the public disclosure of personal information, concerns regarding privacy and the protection of personal data have been raised. The CBN, however, has reassured stakeholders that the disclosure of such sensitive information will comply with the Nigeria Data Protection Act (NDPA) of 2023.
According to Section 25(b) of the NDPA, there are provisions that allow for deviations from the general privacy principles, provided there is a justifiable cause. The CBN’s circular notes that the publication of information related to dormant accounts will adhere to the guidelines set out in both the NDPA and the Banks and Other Financial Institutions Act.
“The publication will include only the names of account holders, the account type, and the bank branch where the account is domiciled. We are confident that this level of disclosure will strike a balance between transparency and privacy,” said Akuka, addressing concerns about potential breaches of privacy laws.
Despite the safeguards, the public release of personal information has sparked mixed reactions from Nigerians. Some citizens have welcomed the move as a step toward more openness in the banking sector, while others have expressed concerns about the implications for data privacy.
Banking Sector Reactions
The new directive has sent ripples through the banking community. While the transparency measures are seen as a necessary step to curb financial secrecy, some financial institutions are bracing for the administrative burden that will come with complying with the new guidelines.
A senior executive from one of Nigeria’s largest banks, who preferred to remain anonymous, expressed concerns about the logistical challenges the new directive would pose. “This is a monumental task that will require significant adjustments to our systems,” the executive said. “Banks will need to invest in additional resources to ensure that the information is published correctly and promptly.”
Others in the sector, however, have expressed support for the move, with one industry analyst stating that it could lead to greater accountability in the financial system. “By exposing dormant accounts, the CBN is ensuring that the financial system operates with greater integrity. This is a positive step for Nigerians and for the economy at large.”
The Bigger Picture
The CBN’s directive is part of its ongoing efforts to improve Nigeria’s financial sector, which has long been criticized for opacity and inefficiency. By forcing financial institutions to publicly disclose dormant accounts and unclaimed balances, the CBN aims to create a more transparent banking environment, reduce fraudulent practices, and ensure that dormant funds are not left untouched for long periods.
For Nigerians, this move represents an opportunity to reclaim what could be lost wealth. As the CBN’s circular noted, the aim is not only to bring transparency but also to ensure that the funds remain accessible to the rightful owners.
The decision comes at a time when Nigeria’s financial sector is under increased scrutiny, with a growing call for reforms in both banking operations and financial governance. The recent surge in digital banking and fintech services also highlights the need for modern regulations that can adapt to the evolving landscape.
