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, July 19, 2024, the apex bank mandated that accounts inactive for a minimum of 10 years be transferred to its custody.
This move aims to standardise 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.
According to Leadership, previous data from the CBN show that 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 of this year, there are 19.799 million dormant bank accounts, making up 6.81% of all bank accounts in Nigeria.
The latest CBN circular has established 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 ten 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.
The latest move by the CBN comes as no surprise, given that Governor Yemi Cardoso announced intentions to intensify monetary tightening to mitigate inflation risks and bolster the foreign exchange market.
Reacting to the CBN’s decision on the custody of dormant accounts, Frank Uwa, a financial analyst, told TimesNow.com.ng that the move is aimed at ensuring idle funds contribute to the economy.
He said:
He added that ensuring that dormant account holders are adequately informed and given ample opportunity to reactivate their accounts is essential to balance economic benefits with customer rights.
In related news, TimesNow.com.ng previously reported that the CBN had initiated another round of dollar sales to licensed Bureau De Change (BDC) operators.
This measure, according to the CBN, aims to maintain liquidity in the retail market for eligible invisible transactions.
As outlined in a new circular released on Thursday, July 18, the apex bank will sell $20,000 to licensed BDC operators at a rate of N1,450 per US dollar.
Source: TimesNow.com.ng
