Key moments
In a significant regulatory update, the Central Bank of Nigeria (CBN) announced on March 12, 2026, that it has removed the mandatory requirement for customers to present affidavits when seeking to reactivate dormant accounts. This decision, disclosed in a circular signed by Rita Sike, the Director of Financial Policy and Regulation, aims to simplify the process for customers while ensuring that necessary safeguards remain in place.
The removal of the affidavit requirement specifically applies to dormant accounts that have not yet been transferred to the Unclaimed Balances Trust Fund (UBTF) Pool Account. However, it is important to note that affidavits will still be mandatory for funds that have already been transferred to the UBTF. This distinction is crucial for customers looking to access their dormant funds.
As part of the new regulations, banks and financial institutions are required to apply enhanced due diligence when handling requests for dormant account reactivation. This means that while the affidavit requirement has been rescinded, financial institutions must implement robust safeguards to verify the accuracy and authenticity of customer information during the reactivation process. Rita Sike emphasized, “The requirement under Section 8.0(ii) for the mandatory use of affidavits in the reactivation of dormant accounts has been rescinded.”
Additionally, banks are now mandated to publish details of dormant accounts and unclaimed balances on their websites and in at least two national newspapers annually. The information disclosed must include account holder names, account type, bank name, and branch address. This transparency is intended to help customers identify and reclaim their dormant funds more easily.
The disclosure requirements align with the Nigeria Data Protection Act and are legally justified under the Banks and Other Financial Institutions Act (BOFIA) 2020. This regulatory framework aims to protect customer data while facilitating access to dormant funds.
This update supersedes an earlier circular issued on February 17, 2025, and takes immediate effect. The CBN’s decision follows representations from various stakeholders, highlighting the need for a more accessible process for customers seeking to reactivate dormant accounts. The move is seen as a step towards enhancing customer service within the banking sector.
Initial reactions to the new regulations have been mixed, with some stakeholders welcoming the changes as a positive development for customer access to funds. However, there are concerns regarding the implementation of enhanced due diligence measures and how effectively banks will manage this new responsibility. As the financial landscape evolves, the CBN’s approach to dormant accounts will be closely monitored by both customers and financial institutions alike.
Overall, the CBN’s revised regulations reflect a commitment to balancing customer accessibility with the necessary safeguards to protect financial integrity. The banking sector is now tasked with adapting to these changes while ensuring compliance with the new directives.