The number of dormant bank accounts in Nigeria has surged to over 19.69 million, according to data from the Nigeria Inter-Bank Settlement System (NIBSS).
The latest industry report, which tracks monthly account statuses throughout 2024, reveals a steady rise in inactive accounts, aligning with the Central Bank of Nigeria’s (CBN) new regulatory measures mandating commercial banks to publish details of dormant accounts.
CBN’s Directive on Dormant Accounts
The CBN’s directive aims to enhance transparency and return unclaimed funds to their rightful owners. Concerns have been raised over the high number of idle accounts, prompting the apex bank to take proactive measures.
According to NIBSS data, dormant accounts remained above 19 million every month since February 2024, closing the year at 19,697,125 inactive accounts in December. This marks a 6.51% increase from January’s figure of 18,492,169, with a peak in May and June at 20.57 million before declining slightly.
The surge in dormant accounts coincided with the CBN’s July 2024 directive requiring banks to publicly disclose details of such accounts. Following this, reports emerged of many affected bank customers rushing to reactivate their accounts.
NIBSS data further shows that after the directive, 1.59 million dormant accounts were reactivated, leading to fluctuations in the numbers throughout the remainder of the year.
A Surge in Closed and Active Accounts
The report also revealed a significant increase in closed accounts, which rose from 21.71 million in January to 25.48 million in December, amounting to 3.78 million account closures in 2024.
However, despite the rise in dormant and closed accounts, active accounts saw remarkable growth, jumping from 209.31 million in January to 311.65 million in December—a 48.9% increase, reflecting a growing trend of banking adoption and financial inclusion.
CBN to Take Over Dormant Funds After 10 Years
Under the new directive, the CBN has mandated all banks and financial institutions to transfer unclaimed balances from dormant accounts into a special Unclaimed Balances Trust Fund Pool Account after 10 years.
These funds may be invested in Nigerian Treasury Bills and other government securities, but will be refunded to rightful owners upon request, with the process expected to take no more than 10 working days.
Explaining the rationale behind the move, CBN Governor Olayemi Cardoso stated that dormant accounts are highly susceptible to fraud, making it necessary for the apex bank to secure such funds.
He assured account holders that no deductions would be made, and that all funds, along with any accrued interest, would be refunded upon verification.
Unclaimed Funds Could Reach N850 Billion
While no updated figure has been provided on the total value of unclaimed funds, former Minister of Finance Zainab Ahmed previously estimated that the Federal Government could access up to N850 billion from unclaimed dividends and dormant account balances.
With the increasing number of dormant and closed accounts, experts warn that banks must rethink their customer engagement and retention strategies to prevent further financial disengagement.