Bank Customers Call for Uniform Dormant Account Policy Across Nigeria

Bank Customers Call for Uniform Dormant Account Policy Across Nigeria

Bank customers in Nigeria are urging the Central Bank of Nigeria (CBN) and financial institutions to adopt a uniform policy on what constitutes a dormant account.

Many customers expressed frustration over the conflicting policies between banks and the CBN, leading to confusion and distrust within the sector.

In interviews with newsmen on Sunday in Abuja, several customers called for clarity and consistency. Mr. Anthony Ogaga, one such customer, pointed out that while the CBN stipulates that an account is considered dormant after a few years of inactivity, some banks define dormancy as just six months of no transactions.

“We need to view this sector as serious. The CBN cannot tell us one thing, and then the banks do something else. A unified policy is crucial to instill confidence in the system,” Ogaga said, urging the regulator and banks to collaborate on a clear and consistent policy.

Mrs. Chinny Olaedo, a Nigerian living abroad, also appealed to the CBN, stressing the importance of protecting customers’ funds, especially for those overseas who maintain Nigerian accounts. She emphasized the need for a standard policy that guides account holders and protects their financial interests.

Similarly, Mr. Emmanuel Yohanna expressed dissatisfaction with the frequent charges levied by banks, which discourage customers from using their accounts. “I avoid depositing money in some of my accounts because the charges eat into my savings. Declaring accounts dormant after a few months only adds to the frustration,” Yohanna stated.

Meanwhile, a bank official, who requested anonymity, explained that in their bank, an account is classified as dormant after six months of inactivity, in line with CBN guidelines. The official added that the bank notifies customers before declaring an account dormant and reports such cases to the CBN.

Another bank official urged customers with dormant accounts to reactivate them by making deposits, reminding them that regular account use helps avoid dormancy.

The CBN, in a circular titled Management of Dormant Accounts and Unclaimed Financial Assets, directed banks to develop policies for managing dormant accounts.

The circular also highlighted the need for financial institutions to maintain detailed records of dormant accounts and transfer balances that remain dormant for up to 10 years to the UBTF Pool Account.

The CBN emphasized the importance of surveillance and second-level authorization for reactivating dormant accounts to ensure proper management and security.