The Central Bank of Nigeria (CBN) has issued revised guidelines on the management of dormant accounts, unclaimed balances, and other financial assets in Nigerian banks and financial institutions.

The new rules aim to identify dormant accounts and reunite them with their owners, establish standardized procedures for account management, and create a framework for reclaiming warehoused funds.

Accounts deemed dormant after 10 years will be eligible for inclusion under the guidelines. These include various deposit types, prepaid cards, government-owned accounts, unclaimed salaries, proceeds from stale drafts, judgment debts, and other financial assets as designated by the CBN.

However, accounts subject to litigation, under investigation, or encumbered by collateral are exempted.

The CBN will establish an “Unclaimed Balances Trust Fund (UBTF) Pool Account” to hold dormant funds. A management committee will oversee the account’s operations, issue regulations, monitor compliance, and manage the fund in line with the Banks and Other Financial Institutions Act (BOFIA) 2020.

The CBN will also publish annual lists of unclaimed balances transferred to the UBTF Pool Account and outline procedures for reclaiming funds.

The Nigeria Deposit Insurance Corporation (NDIC) will assume the role of the financial institution for accounts in liquidation.

Financial institutions are mandated to monitor inactive accounts, notify customers, and establish procedures for continuous contact. They must also bear the costs of maintaining inactive and dormant accounts and render quarterly reports to the CBN.

To facilitate the reclaim process, account owners must inform financial institutions of changes in contact details and submit applications for reclaiming funds. Financial institutions must formulate policies for recognizing and managing dormant accounts, establish effective controls, and transfer eligible balances to the UBTF Pool Account.

The CBN’s move is expected to enhance transparency and accountability in the management of dormant accounts, protect the interests of account holders, and ensure the efficient utilization of financial resources.

Meanwhile, the CBN yesterday in Abuja, rolled out data to show improved growth and stability in the nation’s economy.

This is as the apex bank through its Governor, Olayemi Cardoso, assured Nigerians of better days ahead.

Rolling out the growth and economic stability indices during an interactive session with the Senate Committee on Banking, Insurance and other Financial Institutions, Cardoso said: “The spread between official and BDC rates has narrowed significantly from N162.62 in January to N47.22 in June 2024, indicating successful price discovery, increased market efficiency, and reduced arbitrage opportunities.

“The stock of external reserves increased to US$36.89 billion as of July 16, 2024, compared with US$33.22 billion at end of December 2023, driven largely by receipts from crude oil related taxes and third-party receipts.

“In Q1 2024, we maintained a current account surplus and saw improvements in our trade balance.

“Our external reserves level as at end of June 2024 can finance over 11 months of import of goods and services, or 14 months of goods only.

“This is significantly higher than the prescribed international benchmark of 3.0 months, indicating a strong buffer against external shocks.

“The banking sector remains robust and diverse, comprising 26 commercial banks, six merchant banks, and four non-interest banks.

“Key indicators such as capital adequacy, liquidity, and non-performing loan ratios all showed impressive improvements, underscoring the sector’s growing stability and resilience.

“The equity market has shown impressive performance, with the All-Share Index rising by 33.81 per cent and market capitalization expanding by 38.33 per cent from December 2023 to June 2024, reflecting growing investors’ confidence.

“While we are encouraged by these positive trends, the CBN remains vigilant and committed to implementing policies that support sustainable growth in our financial markets, while maintaining overall economic stability”

He assured the committee members that required measures and strategies have been mapped out to confront emerging challenges.

“To combat inflation, we have implemented a comprehensive set of monetary policy measures. These include raising the policy rate by 750 basis points to 26.25 per cent, increasing Cash Reserve Ratios, normalizing Open Market Operations as our primary liquidity management tool, and adopting Inflation Targeting as our new monetary policy framework.

“In the area of banking supervision, the CBN has taken decisive actions to ensure the safety, soundness, and resilience of the banking industry.

Key measures include intervention in three banks, revocation of Heritage Bank’s licence, increasing minimum capital requirements, and enhancing AML/CFT supervision.

“We also introduced new frameworks for Cash Reserve Requirements and cybersecurity and prohibited the use of foreign currency collaterals for local currency loans.

“We are in the process of reviewing the Bank’s micro and macro-prudential guidelines to reinforce the resilience of financial institutions in Nigeria to withstand tightened conditions, thus creating a secure and attractive investment climate.

“We have signaled our plans to re-capitalize deposit money banks in Nigeria to improve capital inadequacy and their capacity to grow the economy.

“Our ultimate goal is to create a more stable, resilient, and efficient financial system that can better serve the Nigerian economy, while adhering to international best practices,” he said. (The Nation)

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