The Central Bank of Nigeria has instructed all banks and other financial institutions to move all inactive accounts, unclaimed funds, and other financial assets to its designated account.

This directive was communicated in a circular issued on Friday and signed by John Onojah, the acting Director of the Financial Policy and Banking Regulation Department at the apex bank.

According the Central Bank of Nigeria (CBN), all dormant accounts and unclaimed balances held by banks for a minimum duration of ten years shall be transferred to a designated account called the Unclaimed Balances Trust Fund Pool Account.

Furthermore, the apex bank mentioned that the funds from dormant accounts and unclaimed balances may be invested in Nigerian Treasury Bills and other government securities.

However, the Central Bank of Nigeria (CBN) has issued revised guidelines for dormant accounts and unclaimed balances. The new guidelines, which supersede those issued in October 2015, exempt dormant accounts and unclaimed balances that are under litigation or investigation.

The guideline reads, “CBN shall treat unclaimed balances (dormant accounts and financial assets) as follows:

“Open and maintain the ‘UBTF Pool Account’, maintain records of the beneficiaries of the unclaimed balances warehoused in the UBTF Pool Account.

“Invest the funds in Nigerian treasury bills (NTBs) and other securities as may be approved by the ‘Unclaimed Balances Management Committee.

“Refund the principal and interest (if any) on the invested funds to the beneficiaries not later than 10 working days from the date of receipt of the request and where it is imperative to extend the timeline, a notice of extension shall be communicated to the requesting FI stating reasons for the extension.”