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The Central Bank of Nigeria (CBN) has revealed that the number of dormant bank accounts in the country has exceeded 19.69 million, based on data from the Nigeria Inter-Bank Settlement System (NIBSS). This highlights a growing trend of inactive accounts within the financial sector.
According to NIBSS, which tracks monthly account statuses throughout 2024, there has been a steady rise in the number of dormant accounts. This trend coincides with the CBN’s new regulatory directive, which mandates commercial banks to publicly disclose details of dormant accounts to enhance transparency and facilitate the return of unclaimed funds to their rightful owners.
The data indicates that since February 2024, the number of dormant accounts has remained above 19 million, reaching 19,697,125 by December. This marks an increase of 1,205,000 accounts from January’s figure of 18,492,169, representing a 6.51% rise within the year. The highest recorded number of dormant accounts occurred in May and June, peaking at 20.57 million before declining slightly in the latter half of the year.
Notably, there was a sharp increase of 2.08 million dormant accounts within the first six months of 2024 before the CBN issued its July directive on the management of such accounts. Following the directive, the number of dormant accounts saw a decline of 1.59 million, though fluctuations persisted in the subsequent months.
The NIBSS data also reveals a continuous rise in closed accounts, which grew from 21.71 million in January to 25.48 million in December, with 3.78 million accounts closed throughout 2024. However, active bank accounts experienced significant growth over the same period, rising from 209.31 million in January to 311.65 million in December, reflecting a 48.9% increase and signaling an expansion in financial inclusion and banking activity.
Reaffirming its commitment to transparency, the CBN directed all financial institutions to disclose details of dormant accounts, unclaimed balances, and other financial assets on their official websites. A dormant account is defined as one that has been inactive for at least one year.
The directive, outlined in a circular signed by Michael Akuka on behalf of the Director of the Financial Policy and Regulation Department, was titled “Guidelines on Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria.” The guidelines specify that banks must publish essential details such as the names of account holders, the type of account, and the branch where the account is domiciled. For financial institutions without dedicated websites, the required information must be published on their respective industry association’s website.
Addressing concerns about compliance with the Nigeria Data Protection Act, 2023 (NDPA), the CBN clarified that Section 25 (b) of the Act allows for justified deviations. Furthermore, under Section 72 (ii) of the Banks and Other Financial Institutions Act, the CBN is empowered to issue guidelines on managing unclaimed funds in financial institutions.
This recent directive builds on the CBN’s earlier policy issued on July 19, 2024, which required banks and financial institutions to transfer dormant account balances and unclaimed funds to the apex bank’s designated accounts. Dormant funds that have remained unclaimed for at least ten years will be housed in the Unclaimed Balances Trust Fund Pool Account.
The CBN also specified that these unclaimed funds may be invested in Nigerian Treasury Bills and other government securities. However, accounts under litigation or investigation are exempt from this policy. The guideline mandates that beneficiaries of such funds will receive refunds, including any accrued interest, within ten working days of submitting a valid claim, with provisions for extensions if necessary.
CBN Governor Olayemi Cardoso underscored the rationale behind this policy, emphasizing that dormant accounts are highly vulnerable to fraudulent activities. During the 296th Monetary Policy Committee meeting in Abuja, Cardoso explained, “Leaving accounts dormant in banks increases their susceptibility to fraudsters who attempt to steal identities and gain unauthorized access to funds. This policy ensures that such funds are safeguarded at the central bank and can be reclaimed by rightful owners at no cost.”
Despite an increase in active accounts, the persistent high numbers of dormant and closed accounts raise concerns about financial inclusion and banking engagement. The trend suggests that financial institutions may need to reassess their strategies for customer retention and reactivation of inactive accounts.
While the precise value of unclaimed funds remains unknown, former Minister of Finance, Budget, and National Planning, Zainab Ahmed, previously indicated that the government could access up to ₦850 billion from unclaimed dividends and dormant accounts. She reassured the public that these funds would be held in trust and released to verified beneficiaries upon request, ensuring that individuals do not lose their rightful entitlements.
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