The Central Bank of Nigeria (CBN) has announced a significant relaxation of the rules governing dormant bank accounts by removing the previously mandatory affidavit requirement for account reactivation. This move aims to streamline the process for account holders seeking to reclaim inactive funds, while still ensuring protections against fraud.
In 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Nigeria”* dated March 12, 2026, the CBN informed banks and financial institutions that the affidavit mandate has been rescinded following stakeholder concerns over its administrative burden.
This updated directive supersedes an earlier circular issued on February 17, 2025, and takes immediate effect.
According to the document signed by Rita I. Sike, Director of the Financial Policy and Regulation Department, banks are now authorized to accept alternative means for dormant account reactivation requests—provided they maintain robust risk management and stringent identity verification measures.
While the affidavit requirement is lifted for dormant accounts not yet transferred to the Unclaimed Balances Trust Fund (UBTF) Pool Account, customers seeking to reclaim funds that have already been transferred to the UBTF must still present affidavits as stipulated by existing regulations.
The CBN emphasized that despite the removal of affidavits, enhanced due diligence remains mandatory to authenticate individuals initiating reactivation requests. Banks and financial institutions must implement strict identification protocols through both in-person submissions and approved alternative channels.
Beyond reactivation procedures, the CBN has strengthened transparency requirements. Financial institutions are now required to publish information about dormant accounts and unclaimed balances on their operational websites. This information must include the account holder’s name, account type, institution’s name, and the branch of account domicile.
Institutions without operational websites are instructed to post this data on their respective industry association websites. Additionally, this information must be published annually in at least two national newspapers. Where listings are extensive, a single-page notice referring customers to a searchable online directory on the institution’s website is acceptable.
Smaller banks, such as state and unit microfinance banks, are exempted from newspaper publication and are required only to display the information at their business locations.
Addressing concerns about compliance with the Nigeria Data Protection Act (NDPA) 2023, the CBN clarified that these disclosure obligations are consistent with legal provisions that allow processing of personal data where necessary for regulatory compliance or protection of vital interests.
Citing Section 72(11) of the Banks and Other Financial Institutions Act (BOFIA) 2020, the apex bank underscored its authority to regulate unclaimed funds and affirmed that these measures are legally justified and aligned with relevant data protection and banking laws.
This policy update marks a significant step by the CBN to reduce bureaucratic hurdles confronting account holders, promoting ease of access to funds while balancing the need for security and transparency in the financial sector.
