CBN Probes Dormant Bank Accounts Worth Billions.

Keep up with the latest news and be part of our weekly giveaways and airtime sharing; follow our WhatsApp channel for more updates. Click to Follow us

The number of dormant bank accounts in Nigeria has surpassed 19.69 million, according to the Nigeria Inter-Bank Settlement System. This figure has been steadily rising throughout 2024, coinciding with new regulatory measures by the Central Bank of Nigeria (CBN) requiring commercial banks to publish details of dormant accounts.

The CBN directive aims to enhance transparency and return unclaimed funds to their rightful owners. However, concerns have been raised about the significant number of accounts that have remained idle for extended periods.

According to the NIBSS data, dormant accounts have remained above 19 million every month since February 2024, with December closing at 19,697,125 inactive accounts. This represents a 6.51% rise over the year, with a peak of 20.57 million in May and June before dropping slightly in the second half of the year.

Following the CBN’s July directive, many bank customers rushed to reactivate their accounts, resulting in a 1.59 million decrease in dormant accounts. However, after this decline, there was a fluctuating increase for the remaining months of the year.

The CBN has reaffirmed its directive to all banks and financial institutions to publicly disclose details of dormant accounts, unclaimed balances, and other financial assets on their official websites.

Governor of the Central Bank of Nigeria, Olayemi Cardoso, justified this move, saying, “With respect to dormant accounts, what I found personally is if you leave accounts dormant in banks, sometimes more than when you don’t leave them dormant in banks. In fact, most times, they are more susceptible to fraudsters copying your identity and trying to gain hold of the system to grab your money.”

Cardoso added, “The policy and the directive are meant to ensure that all those monies come to the central bank for safekeeping and it is at zero cost to the beneficiaries. All that will happen is that the central bank will manage the money within our possession and when the rightful owner surfaces, the money is returned plus whatever income is accrued to you.”

The former minister of finance, budget and national planning, Zainab Ahmed, earlier stated that the Federal Government would have access to as much as N850bn from the special trust fund of unclaimed dividends and dormant account balances. She said, “On the issue of unclaimed dividends and government’s accounts and projections, there would be as much as N850 billion to be realised into the special trust fund of unclaimed dividends.”

She further explained, “The government is keeping the money in trust for the beneficiaries. At any time, a registrar or a bank confirms that this is the true and bonafide beneficiary of this fund, then the government will release from that trust fund to the investor who has it. They have nothing to lose as they would be paid their entitlements from the special trust fund to be set up by the federal government once they are properly identified.”

The increasing number of dormant accounts raises concerns about financial inclusion and banking engagement strategies. While the rise in active accounts suggests strong banking adoption, the persistently high dormant and closed account numbers indicate that financial institutions need to re-evaluate their customer retention approaches.

According to the NIBSS data, active accounts grew significantly over the same period, rising from 209.31 million in January to 311.65 million in December. This increase of 102.3 million accounts represents a 48.9% growth, indicating a continued expansion in banking activity and financial inclusion.

The CBN’s directive on dormant accounts is part of a broader effort to enhance transparency and accountability in the banking sector. The apex bank has mandated that financial institutions publish details of dormant accounts, unclaimed balances, and other financial assets on their official websites.

Ogbugo Ukoha, NMDPRA Executive Director, Distribution Systems, Storage, and Retailing Infrastructure, stated, “The first stakeholder’s technical committee met today to drill down and put timelines for about 10 resolutions that had been taken on how to drive down the significant increase that had been observed in relation to trucks and transit incidents and fatalities.”

He emphasized the importance of cooperation among stakeholders, saying, “The important thing about this is that, for the first time, consensus was built amongst all stakeholders, and we are continuing to encourage that we will work together cohesively to deliver a safe transportation of petroleum products across the country.

Please don’t forget to “allow the notification” so you will be the first to get our gist when we publish it. 
Drop your comment in the section below, and don’t forget to share the post.