In a move aimed at improving transparency within Nigeria’s banking sector, the Central Bank of Nigeria (CBN) has issued a directive requiring banks and financial institutions to disclose details of dormant accounts. The directive, signed by Michael Akuka, Director of the Financial Policy and Regulation Department, was released on February 17, 2025. It mandates the publication of information on dormant accounts, including the names of account holders, the type of accounts, and the branches where these accounts are held.
The new directive is part of the Central Bank’s enforcement of the “Guidelines on the Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria 2024,” which aims to ensure that unclaimed funds are properly accounted for. According to the CBN’s announcement, financial institutions are expected to make these details publicly available through various platforms, including their websites, the websites of relevant industry associations, and at least two national newspapers.
This directive follows growing concerns from stakeholders over the handling of dormant accounts, which may not have been managed in compliance with the guidelines. Akuka’s circular emphasizes that the goal is to enhance transparency in managing dormant accounts and ensure that funds in these accounts do not remain unclaimed indefinitely.
“The Guidelines on Management of Dormant Accounts, Unclaimed Balances and Other Financial Assets in Banks and Other Financial Institutions in Nigeria 2024, requires banks and some other financial institutions to publish on their websites, the names of individuals authorized to operate the accounts, the type of account and the address of the branch where the account is domiciled,” the CBN statement reads. “In the case of other financial institutions (OFIs) without websites, to publish on their association’s website.”
Despite the clear benefits in promoting transparency, the directive has sparked concerns about privacy and the potential violation of the Nigeria Data Protection Act (NDPA) 2023. Some stakeholders have raised questions about whether the public release of such sensitive data could lead to breaches of individual privacy.
The CBN, however, maintains that the disclosures are legally justified under the NDPA. Section 25(b) of the NDPA permits exceptions to the general principles of the Act, particularly where there is a legitimate interest in publishing such information. The Central Bank also points to Section 72(i) of the Banks and Other Financial Institutions Act, which authorizes the CBN to issue guidelines for the administration of unclaimed funds.
In practical terms, individuals who have dormant accounts will find their personal details publicly disclosed unless they take action to either reactivate their accounts or claim the balances. Banks are expected to provide an avenue for account holders to reclaim their funds before any disclosures are made. This provides individuals with an opportunity to prevent the publication of their details if they wish to retain control of their accounts.
The CBN’s guidelines also specify that information about dormant accounts should be published annually. “Information to be published annually in at least two national daily newspapers or the premises of State and Unit microfinance banks, shall also convey the details as listed above,” the circular states. This ensures that the disclosure process is not a one-time event but a regular practice to keep the public informed.
The new rules also apply to other financial institutions that manage dormant accounts, with the stipulation that institutions without their own websites must publish the details on the websites of relevant industry associations. This provision ensures that even smaller or less-equipped financial entities are still able to comply with the regulations.
Critics of the move argue that, while transparency is important, it could result in significant privacy concerns for individuals who may not want their financial details exposed publicly. Some have questioned whether this new policy could lead to a potential misuse of the disclosed data.
In response, the CBN has reassured the public that the publication of dormant account details will be carried out in compliance with applicable laws and with respect for individuals’ privacy rights. The bank also emphasized that the goal is to ensure the proper management of unclaimed funds and prevent such funds from being left unaccounted for.
This directive is set to have significant implications for both banks and their customers in Nigeria, as it strengthens regulatory oversight of dormant accounts while ensuring that individuals have the opportunity to reclaim their funds before they are made public.
As the deadline for implementation of the guidelines approaches, financial institutions are expected to review their procedures for handling dormant accounts and begin preparations to comply with the new disclosure requirements.
