To enhance the management of inactive funds, the Central Bank of Nigeria (CBN) has issued a directive for all banks and financial institutions to transfer funds from dormant accounts to the central bank.
This directive, announced by Mr. John Onoja, Acting Director of Financial Policy and Regulations, targets accounts that have been inactive for ten years or more.
The CBN’s guidelines aim to address several key objectives. They seek to identify dormant and unclaimed funds and reunite them with their rightful owners. Additionally, the guidelines are designed to manage these funds in trust until they are reclaimed, standardize the management of dormant accounts, and establish clear procedures for reclaiming such assets.
The directive applies to a wide range of accounts, including current, savings, and term deposits in local currency, as well as domiciliary accounts and prepaid card accounts. It also encompasses government-owned accounts, unclaimed salaries, wages, commissions, and bonuses, and proceeds from financial instruments and drafts that have not been cleared or presented for payment.
However, certain accounts are exempt from this directive. These include accounts involved in ongoing litigation, those under investigation by regulatory or law enforcement agencies, and accounts encumbered by collateral or liens.
