CBN's New Directive on Dormant Accounts: Transparency or Economic Stimulus?



The Central Bank of Nigeria (CBN) has issued a directive mandating banks and other financial institutions to publish details of dormant accounts, unclaimed balances, and other financial assets on their websites. This directive, outlined in a circular titled "Guidelines on Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria," was signed by Michael Akuka on behalf of the Director of the Financial Policy and Regulation Department.

Key Highlights of the Directive:

1. Publication of Dormant Accounts – Banks must publish the names of account holders, the type of account, and the branch where the account is domiciled.


2. Increased Transparency – This move aims to provide clarity on unclaimed funds and give rightful owners an opportunity to reclaim them.


3. Reduction of Unclaimed Balances – By making this information public, the CBN hopes to reunite owners with their funds, reducing the volume of unclaimed assets in the banking system.



Economic Implications of the Directive:

1. Boost to Liquidity – If account holders or their beneficiaries reclaim their funds, it could inject additional liquidity into the economy, boosting consumer spending and investments.


2. Strengthening Public Confidence – This transparency measure could restore trust in the banking sector, assuring Nigerians that their money is secure and recoverable.


3. Potential Revenue for Government – If unclaimed funds remain dormant beyond a specified period, they may be transferred to government-managed accounts, potentially serving as an alternative revenue source.


4. Operational Burden on Banks – Banks may experience increased administrative work in updating and publishing these lists, which could lead to additional costs and compliance challenges.



The Bigger Picture

While this directive promotes financial transparency, the key question remains: Will it stimulate economic activity by reuniting Nigerians with their forgotten wealth, or will it simply be another bureaucratic exercise? Either way, the policy marks a significant shift in Nigeria’s financial landscape, emphasizing accountability and efficient asset management.


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