New directive simplifies account reactivation process while introducing stricter disclosure rules for banks on dormant accounts and unclaimed funds….
The Central Bank of Nigeria (CBN) has revised its guidelines on the management of dormant bank accounts, removing the requirement for customers to provide affidavits when seeking to reactivate such accounts.
In a circular dated March 12, 2026, and sent to banks and other financial institutions, the apex bank said the decision followed requests and feedback from industry stakeholders who had raised concerns about the difficulties created by the affidavit requirement.
The directive, signed by Rita Sike, stated that the move is aimed at simplifying the process of reactivating dormant accounts while still maintaining safeguards to protect the integrity of Nigeria’s financial system.
Easier Reactivation Process
According to the CBN, the mandatory affidavit requirement contained in Section 8.0(ii) of the previous guideline has now been withdrawn.
However, banks and other financial institutions are still expected to carry out thorough verification before allowing customers to regain access to dormant accounts.
“Notwithstanding this rescission, banks and other financial institutions shall continue to apply enhanced due diligence by implementing robust safeguards to verify the accuracy and authenticity of customer information during dormant account reactivation,” the circular stated.
Exception for Funds Already Moved to Trust Fund
The CBN clarified that the new rule applies only to dormant accounts that have not yet been transferred to the Unclaimed Balances Trust Fund (UBTF) Pool Account.
“For the avoidance of doubt, affidavits are no longer required for reactivating dormant accounts that have not been transferred to the UBTF Pool Account,” the circular explained.
However, customers attempting to reclaim funds that have already been moved into the trust fund will still be required to present affidavits.
“This rescission does not extend to the reclaiming of funds already transferred to the UBTF Pool Account, where affidavits remain mandatory,” the apex bank added.
New Disclosure Rules for Banks
Beyond the changes to the reactivation process, the revised framework also introduces stricter disclosure obligations for banks and other financial institutions.
Under the new directive, financial institutions must publicly disclose information about dormant accounts that have not yet been transferred to the trust fund, as well as details of unclaimed balances already moved into the UBTF Pool Account.
The information must be published on the official websites of the banks or financial institutions.
The CBN specified that only limited details should be disclosed, including:
- Names of authorised account holders
- Type of account
- Name of the financial institution
- Branch address where the account is domiciled
Banks that do not operate functional websites are required to publish the information through the official websites of their respective industry associations.
Mandatory Newspaper Publication
In addition to online disclosure, banks are also required to publish the information annually in at least two national daily newspapers.
However, where the list of dormant accounts exceeds two full pages, institutions are allowed to publish a one-page notice in two national newspapers directing customers to a dedicated and searchable section of their websites where the complete list is available.
The directive exempts state and unit microfinance banks from the newspaper publication requirement, although they must still display the information at all their business locations.
Data Protection Compliance
Addressing concerns about privacy, the central bank said the disclosure requirements comply with existing data protection laws, including the Nigeria Data Protection Act.
The apex bank cited Section 25(1)(b) of the law, which allows the processing of personal data when necessary to meet legal obligations or protect the interests of individuals.
The CBN also referenced provisions in the Banks and Other Financial Institutions Act, which empower it to issue regulations on the administration of unclaimed funds held by banks and other financial institutions.
According to the regulator, the disclosure framework is therefore legally justified and consistent with the provisions of both laws.
The new circular replaces the earlier directive issued by the CBN on February 17, 2025, and takes immediate effect across all banks and other financial institutions in Nigeria.
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