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CBN Directs Banks to Transfer Dormant Account Funds

The Central Bank of Nigeria (CBN) has issued a directive to all banks and financial institutions to transfer funds from dormant accounts to the apex bank. The directive, issued by CBN's Acting Director of Financial Policy and Regulations, Mr. John Onoja, applies to accounts that have remained inactive for 10 years or more.

The guidelines aim to identify and reunite dormant accounts and unclaimed balances with their rightful owners, standardize the management of such accounts, and establish a procedure for reclaiming warehoused funds. Eligible accounts include current, savings, and term deposits, as well as domiciliary accounts, prepaid card accounts, and wallets.

However, certain classes of dormant accounts are exempted from this directive, including accounts subject to litigation, judgment debts, accounts under investigation, and encumbered accounts.

The CBN's directive is intended to promote transparency and accountability in the management of dormant accounts and unclaimed balances, and to ensure that rightful owners can reclaim their funds.