The Central Bank of Nigeria (CBN) has issued a new directive to Nigerian financial institutions regarding dormant accounts.

The new directives disclose that the CBN will take over the funds left in the accounts and invest them in treasury bills and other securities.

CBN to invest the funds in T-Bills

According to the circular issued on Friday, July 19, 2024, and signed by the bank’s Ag Director of Financial Policy and Regulation Department, John Onojah, the bank disclosed that it shall open and maintain an account meant for warehousing unclaimed balances in banks and other financial institutions in Nigeria.

The circular reads:

“CBN shall treat unclaimed balances (dormant accounts and financial assets) as follows: Open and maintain an Unclaimed Balances Trust Fund (UBTF) Pool Account’, maintain records of the beneficiaries of the unclaimed balances warehoused in the UBTF Pool Account; invest the funds in Nigerian treasury bills (NTBs) and other securities as may be approved by the ‘Unclaimed Balances Management Committee’.

“Refund the principal and interest (if any) on the invested funds to the beneficiaries not later than ten (10) working days from the date of receipt of the request. Where it is imperative to extend the timeline, a notice of extension shall be communicated to the requesting FI stating reasons for the extension,” the circular stated.

CBN to publish names of owners of accounts

According to reports, the apex bank disclosed that it will establish standard procedures for reclaiming warehoused funds and resolve escalated complaints regarding reclaiming the funds.

Per the circular, CBN will also be responsible for publishing on its website the list of the owners of the unclaimed balances that have been transferred to the UBTF Pool Account and the procedure for reclaiming warehoused funds and other financial assets.

Reports say CBN directed banks and financial institutions to deposit unclaimed balances and funds in dormant accounts in its accounts.

The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to deposit unclaimed balances and funds in dormant accounts to the apex bank accounts.

It also issued a temporary guideline for account owners and beneficiaries to recover their dormant funds left for about 10 years.

A dormant account is a bank account that has remained inactive for at least one year.

Legit.ng reported that the CBN unveiled the draft stage for the guideline in April.