CBN Scraps Affidavit Requirement for Reactivating Dormant Bank Accounts
The Central Bank of Nigeria (CBN) has removed the requirement for customers to provide affidavits when reactivating dormant bank accounts, a move aimed at simplifying access to dormant funds while maintaining safeguards within the financial system.
The decision was announced in a circular signed by the Director of the Financial Policy and Regulation Department, Rita Sike, as part of broader regulatory adjustments intended to improve customer experience in the banking sector.
According to the apex bank, the policy change followed consultations with stakeholders and forms part of ongoing efforts to streamline banking procedures without compromising financial system integrity.
Affidavit Requirement Withdrawn
The CBN confirmed that the affidavit requirement previously mandated under Section 8.0(ii) of the dormant accounts regulation has been formally rescinded.
However, the regulator emphasised that financial institutions must continue to apply enhanced due diligence procedures when processing requests to reactivate dormant accounts.
“Banks and other financial institutions shall continue to implement robust safeguards to verify the accuracy and authenticity of customer information during dormant account reactivation,” the circular stated.
The CBN clarified that the removal of the affidavit requirement applies only to dormant accounts that have not yet been transferred to the Unclaimed Balances Trust Fund (UBTF) Pool Account.
For funds already transferred to the UBTF, affidavits remain mandatory for reclaiming such balances.
New Disclosure Rules for Dormant Accounts
As part of the revised framework, banks and other financial institutions are now required to publicly disclose information about dormant accounts and unclaimed balances.
Under the directive, financial institutions must publish limited details of dormant accounts on their official websites.
The information to be disclosed includes:
- Name of the authorised account holder
- Type of account
- Name of the bank or financial institution
- Branch address where the account is domiciled
Where banks do not operate active websites, the information must be published through the official websites of their respective industry associations.
In addition, the CBN directed banks to publish dormant account information annually in at least two national newspapers.
However, if the list exceeds two pages, banks may publish a one-page notice directing customers to a dedicated section of their websites where the complete information can be accessed.
The apex bank noted that state and unit microfinance banks are exempted from the newspaper publication requirement, but must display the information prominently in their business locations.
Compliance with Data Protection Laws
The CBN also addressed concerns about compliance with the Nigeria Data Protection Act, explaining that the disclosure requirements are consistent with existing legal provisions.
The regulator cited Section 25(1)(b) of the Act, which allows the processing of personal data where it is necessary to comply with a legal obligation or to protect the interests of the data subject.
The directive also references the Banks and Other Financial Institutions Act (BOFIA), which empowers the CBN to issue guidelines for managing unclaimed balances in financial institutions.
According to the apex bank, the revised policy supersedes its earlier circular issued on February 17, 2025, and takes immediate effect.
BRANDECONOMY Insight
The CBN’s decision to remove the affidavit requirement for dormant account reactivation represents a small but significant shift toward customer-centric banking regulation in Nigeria.
Dormant accounts have long been a major challenge within the country’s financial system, with billions of naira sitting idle due to bureaucratic barriers and poor customer awareness.
Three structural implications stand out.
1. Reducing Bureaucratic Friction in Banking
For many Nigerians, reactivating dormant accounts has historically been a complex process involving affidavits, identification checks, and multiple bank visits.
Removing the affidavit requirement reduces administrative friction and could make it easier for customers to reclaim dormant funds.
2. Strengthening Transparency Around Unclaimed Funds
By requiring banks to publish details of dormant accounts and unclaimed balances, the CBN is effectively increasing transparency within the financial system.
This policy could help reconnect customers with forgotten accounts and reduce the volume of funds that remain idle for long periods.
3. Aligning Banking Regulations with Digital Finance
Nigeria’s banking system is increasingly digital, with customers managing accounts through mobile apps and online platforms.
Simplifying dormant account procedures aligns with this digital transformation, making it easier for individuals to manage accounts remotely while still preserving safeguards against fraud.
Ultimately, the policy signals a broader regulatory direction: modernising Nigeria’s financial system by balancing consumer convenience with financial integrity.
