CBN scraps major requirement to reactivate dormant account

CBN scraps major requirement to reactivate dormant account

CBN scraps major requirement to reactivate dormant account

The Central Bank of Nigeria has announced that customers no longer need to submit affidavits to reactivate dormant bank accounts.

This change will make it easier for account holders to access funds that have been idle for years, potentially unlocking billions of naira previously tied up in inactive accounts.

The policy shift came after stakeholders expressed concern over the difficulty and cost of obtaining affidavits.

In response, the apex bank issued new guidelines to banks and financial institutions allowing alternative methods for account reactivation, while maintaining strict verification procedures to ensure security.

The directive applies to dormant accounts that have not been moved to the Unclaimed Balances Trust Fund Pool Account.

Customers with funds already transferred to the pool account must still provide affidavits to reclaim their money.

Under the updated framework, banks are required to follow identification rules and risk management protocols when handling reactivation requests.

They must also disclose information about dormant and unclaimed accounts on their websites and, for larger banks, in at least two national newspapers annually. Microfinance and smaller institutions may share this information at their physical locations instead.

The CBN explained that the disclosures comply with Nigeria’s data protection law and existing banking regulations, ensuring that the release of information about account holders is both legal and secure.

This policy is expected to improve access to trapped funds, reduce customer costs, and support the ongoing financial reforms in the country.