The Central Bank of Nigeria (CBN) has announced that next-of-kin, beneficiaries or legal agents can now claim unclaimed funds from inactive accounts by submitting applications to financial institutions. According to a report, the new directive provides a clear process for reclaiming unclaimed balances, ensuring that rightful owners can access funds left dormant for extended periods.
To make a claim, applicants must submit legal documentation proving ownership. For corporate entities, information about directors and authorized signatories must also be provided. Banks will verify the claim and forward it to the CBN, which will process and refund the principal amount along with any accrued interest within ten business days.
Under the new framework, the CBN oversees dormant accounts and unclaimed funds, managing them through a dedicated office and a management committee. These funds will be lodged in the Unclaimed Balances Trust Fund (UBTF) Pool Account and invested in treasury bills and other approved securities until a valid reclaim request is made.
In cases where a financial institution loses its license, the Nigeria Deposit Insurance Corporation (NDIC) will take charge of handling dormant accounts. The new rules also extend to dormant domiciliary accounts, but active domiciliary accounts remain unaffected.
A bank account is considered inactive if there have been no customer-initiated transactions for six to twelve months. It is officially classified as dormant after one year and remains so until reactivated by the account holder. Funds that remain unclaimed for ten years or more fall under the new policy.
Eligible accounts include current, savings, term deposits, domiciliary accounts, prepaid card accounts, deposits for shares, and government-owned accounts. However, accounts under litigation, investigation, or other legal restrictions are exempt. Banks are required to notify account owners when an account becomes inactive and provide quarterly reminders thereafter.
The new directive follows a recent CBN mandate requiring banks to transfer all unclaimed funds to a central account managed by the apex bank. This move is part of the CBN’s revised guidelines for managing assets owned by banks and other financial institutions, including unclaimed funds and inactive accounts.
