CBN Releases New Rule For Activating Dormant Account, Removes Affidavit Requirement
- The CBN has removed affidavit requirements for reactivating dormant bank accounts
- Nigerian banks can now accept reactivation requests through alternative digital channels
- The new disclosure rules enhance transparency for dormant accounts and unclaimed balances
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Central Bank of Nigeria (CBN) has introduced a new rule that removes the requirement for customers to present affidavits when reactivating dormant bank accounts.
The move is designed to simplify the process of reclaiming inactive funds while maintaining strong safeguards against fraud.
Source: Twitter
The decision was announced in a circular sent to banks and other financial institutions across the country.
According to the regulator, the policy change followed feedback from stakeholders who complained that the affidavit requirement created unnecessary delays and administrative hurdles for customers attempting to access their dormant accounts.
The updated directive forms part of the apex bank’s broader efforts to improve transparency in the banking system and ensure that unclaimed funds are reunited with their rightful owners.
New guidelines take immediate effect
The revised policy was contained 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 circular, signed by Rita I. Sike, director of the Financial Policy and Regulation Department at the CBN, replaces an earlier directive issued on February 17, 2025.
According to the apex bank, the updated framework takes immediate effect and applies to all banks and financial institutions operating in Nigeria.
The CBN explained that the new rules will help streamline processes while strengthening regulatory oversight of dormant accounts and unclaimed financial assets.
Banks allowed to use alternative reactivation channels
Under the revised guidelines, banks and other financial institutions are now permitted to accept requests for dormant account reactivation through alternative channels, rather than relying solely on in-person visits.
Previously, customers were required to visit their bank branch physically and submit supporting documents, including sworn affidavits, before a dormant account could be restored.
With the new directive, financial institutions can adopt additional methods for receiving reactivation requests.
These could include digital channels, subject to strict identity verification and fraud prevention measures.
The CBN stressed that while the affidavit requirement has been removed, banks must still implement robust identification and authentication procedures to ensure that the person requesting the reactivation is the legitimate account holder.
Enhanced due diligence is still required
Despite simplifying the process, the regulator emphasised that financial institutions must maintain strict risk management standards when handling dormant accounts.
Banks are required to apply enhanced due diligence procedures and conduct proper verification checks before approving any request to reactivate an inactive account.
According to the circular, these safeguards are necessary to prevent fraud, identity theft and unauthorised access to financial assets.
The CBN said the goal is to strike a balance between making it easier for customers to reclaim their funds and ensuring the integrity of the financial system.
Rule applies only to certain dormant accounts
The apex bank 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.
Dormant funds are typically moved to the UBTF after remaining unclaimed for a prolonged period, in line with regulatory guidelines governing unclaimed financial assets.
For customers seeking to reactivate dormant accounts that are still held within their banks, affidavits will no longer be required.
However, the rule is different for funds that have already been transferred to the UBTF.
In such cases, customers who want to reclaim their money must still present affidavits and comply with the procedures outlined in the existing guidelines.
New disclosure rules for banks
In addition to the changes to the reactivation process, the CBN also strengthened disclosure requirements related to dormant accounts and unclaimed balances.
Banks and other financial institutions have been directed to publish information about dormant accounts that have not yet been transferred to the UBTF Pool Account, as well as unclaimed balances already moved to the fund.
The details to be disclosed include the names of authorised account holders, the account type, the name of the financial institution and the branch where the account is domiciled.
This information must be made available on the operational websites of the banks.
Financial institutions that do not maintain websites are required to publish the details on the official websites of their industry associations.
Annual newspaper publication required
To further improve public awareness, the CBN also directed banks and other financial institutions to publish the required information annually in at least two national daily newspapers.
Where the list of dormant accounts exceeds two full pages, institutions may instead publish a single-page notice directing customers to a dedicated section of their corporate websites containing the full list.
However, the regulator introduced some exemptions for smaller institutions.
State and unit microfinance banks are not required to publish the information in national newspapers. Instead, they are only required to display the details at their business locations.
CBN addresses data protection concerns
The regulator also responded to concerns from financial institutions regarding compliance with Nigeria’s data protection laws.
According to the CBN, the disclosure requirements are consistent with the provisions of the Nigeria Data Protection Act (NDPA) 2023, which allows personal data to be processed where it is necessary to comply with a legal obligation or protect the interests of individuals.
Source: Twitter
The apex bank also cited Section 72(11) of the Banks and Other Financial Institutions Act (BOFIA) 2020, which authorises the regulator to issue guidelines on the management of unclaimed funds in banks and other financial institutions.
By aligning the new rules with existing legal frameworks, the CBN said the updated guidelines are fully justified and intended to improve transparency, strengthen consumer protection and ensure dormant funds are eventually returned to their rightful owners.
CBN imposes transfer limit for new mobile banking users
Legit.ng earlier reported that CBN has announced a transfer limit of N20,000 on newly activated mobile banking applications within the first 24 hours of activation.
This is part of fresh measures to strengthen security in Nigeria’s instant payment system.
The directive was contained in a circular dated March 12, 2026, addressed to banks, other financial institutions and payment service providers.
Source: Legit.ng
