The Central Bank of Nigeria (CBN) has clarified that next of kin, legal representatives, and beneficial owners are now authorized to claim unclaimed balances or funds from dormant accounts.
This update was provided in a report released by the apex bank over the weekend.
According to the CBN, next of kin can submit claims for unclaimed balances or funds by applying to the financial institutions holding the dormant accounts. Applications must include necessary legal documentation proving the claimant’s right to the funds. For corporate entities, the application must include details such as directors, authorized signatories, business addresses, and any updates related to the account.
The CBN has the authority to regulate the management of dormant accounts and unclaimed funds, and to receive and manage these funds in trust for account holders and beneficiaries. Additionally, the bank is authorized to establish a dedicated office, overseen by a management committee, for this purpose.
The report reads: “The CBN will manage the unclaimed balances by warehousing the funds in the Unclaimed Balances Trust Fund (UBTF) Pool Account and thereafter investing the funds in Nigerian treasury bills and other approved securities.
“The Unclaimed Balances Trust Fund (UBTF) Pool Account is an account maintained by the CBN for the purpose of warehousing and managing unclaimed balances in eligible accounts.”
The Central Bank of Nigeria (CBN) has stated that it will refund the principal and any accrued interest on invested funds to beneficiaries within 10 working days of receiving a claim request.
Account owners must visit their financial institutions to complete an asset reclaim form and provide evidence of account ownership, a sworn affidavit of support, and valid identification. Financial institutions are required to verify the claim and submit it, along with supporting documents, to the CBN within 10 working days.
Once the CBN receives the request from the financial institution, it will process and refund the funds to the beneficiaries’ accounts within 10 working days.
In cases where a financial institution’s license is withdrawn, the Nigeria Deposit Insurance Corporation (NDIC) will take over the management of dormant accounts.
The CBN clarified that while banks are not required to transfer funds from domiciliary accounts to the CBN, balances in dormant domiciliary accounts will be subject to this policy change, similar to dormant naira accounts.
“However, no active domiciliary account is affected by the policy”, the bank stated.
The bank defines an inactive account as one that has had no customer-initiated transactions for six to 12 months. In contrast, a dormant account is one that has been inactive for one year or longer.
It said: “Unclaimed balances are account balances and other financial assets that have remained dormant for a minimum of ten years in the books of financial institutions and qualify for transfer to the CBN.
“Eligible accounts are dormant account balances that have remained with the financial institutions for a period of 10 years or more.
“These eligible accounts include current, savings, term deposits in local currency, domiciliary accounts, deposits for shares and mutual investments, prepaid card accounts and wallets, government-owned accounts, and others as specified in the guidelines by the CBN.”
The regulator outlined exemptions for accounts not classified as dormant, including those subject to litigation; accounts with unresolved judgment debts where the creditor has not yet claimed the award and the case remains active; accounts under investigation by regulatory authorities or law enforcement agencies; and encumbered accounts, such as those involving collaterals or liens.
The CBN instructed commercial banks to promptly notify account owners in writing via agreed mediums—such as email, text message, or letter—when an account becomes inactive or dormant, and to continue these notifications on a quarterly basis.
