CBN Streamlines Dormant Account Reactivation Process
The Central Bank of Nigeria has implemented a significant regulatory change by eliminating the mandatory affidavit requirement for customers seeking to reactivate dormant bank accounts. This strategic move aims to simplify access to inactive funds while preserving robust anti-fraud mechanisms within Nigeria's financial ecosystem.
Immediate Implementation of Revised Guidelines
The policy revision was formally communicated through a circular titled "Guidelines on the Management of Dormant Accounts, Unclaimed Balances and Other Financial Assets in Banks and Other Financial Institutions in Nigeria," dated March 12, 2026. This document, authorized by Rita I. Sike, Director of the Financial Policy and Regulation Department at the CBN, supersedes the previous directive issued on February 17, 2025. The updated framework takes immediate effect and applies universally to all banking institutions operating across Nigeria.
Digital Channels Now Permitted for Reactivation
Under the newly established guidelines, financial institutions are now authorized to accept reactivation requests through alternative channels beyond traditional in-person branch visits. Previously, customers faced the cumbersome requirement of physically presenting themselves at bank branches with supporting documentation, including sworn affidavits. The revised policy enables banks to implement digital verification methods, subject to stringent identity authentication protocols and comprehensive fraud prevention measures.
The CBN has emphasized that while the affidavit mandate has been removed, financial institutions must maintain rigorous identification procedures to confirm the legitimacy of account holders requesting reactivation.
Enhanced Due Diligence Requirements Maintained
Despite simplifying the administrative process, the regulatory authority has reinforced the necessity for financial institutions to uphold strict risk management standards. Banks are required to implement enhanced due diligence procedures and conduct thorough verification checks before approving any dormant account reactivation requests. According to the circular, these protective measures remain essential to prevent fraudulent activities, identity theft, and unauthorized access to financial assets.
The CBN stated that the objective is to achieve an optimal balance between facilitating customer access to their funds and ensuring the overall integrity of Nigeria's financial system.
Scope and Limitations of New Policy
The apex bank has clarified that the affidavit removal applies specifically to dormant accounts that have not yet been transferred to the Unclaimed Balances Trust Fund Pool Account. Dormant funds typically migrate to this trust fund after remaining unclaimed for extended periods, in accordance with existing regulatory provisions governing unclaimed financial assets.
For customers reactivating dormant accounts still maintained within their banking institutions, affidavits are no longer required. However, different procedures apply for funds already transferred to the UBTF, where customers must still present affidavits and comply with established reclamation protocols.
Strengthened Disclosure Requirements for Financial Institutions
Complementing the reactivation process changes, the CBN has intensified disclosure obligations concerning dormant accounts and unclaimed balances. Banking institutions are now directed to publish comprehensive information regarding dormant accounts not yet transferred to the UBTF Pool Account, as well as unclaimed balances already moved to the fund.
The required disclosure details include:
- Names of authorized account holders
- Account type classification
- Financial institution name
- Branch location where the account is domiciled
This information must be published on the operational websites of the banks. Financial institutions without dedicated websites must publish the details on the official websites of their respective industry associations.
Annual Publication Mandates and Exemptions
To enhance public awareness and accessibility, the CBN has mandated that banks and financial institutions publish the required information annually in at least two national daily newspapers. For institutions where the dormant account list exceeds two full pages, they may instead publish a single-page notice directing customers to a dedicated section of their corporate websites containing the complete listing.
The regulator has introduced specific exemptions for smaller institutions. State and unit microfinance banks are not required to publish information in national newspapers, but must display the details prominently at their business locations.
Data Protection Compliance Addressed
The CBN has responded to concerns from financial institutions regarding compliance with Nigeria's data protection legislation. According to the regulatory authority, the disclosure requirements align with provisions of the Nigeria Data Protection Act 2023, which permits personal data processing when necessary to fulfill legal obligations or protect individual interests.
The apex bank also referenced Section 72(11) of the Banks and Other Financial Institutions Act 2020, which authorizes the regulator to issue guidelines concerning the management of unclaimed funds within financial institutions. By harmonizing the new rules with existing legal frameworks, the CBN asserts that the updated guidelines are fully justified and designed to improve transparency, strengthen consumer protection, and ensure dormant funds are eventually reunited with their legitimate owners.
