Nigeria’s Central Bank Removes Affidavit Requirement for Reactivating Dormant Bank Accounts

The Central Bank of Nigeria (CBN) has announced a significant revision to its regulatory framework governing dormant bank accounts, eliminating the requirement for customers to submit affidavits when seeking to reactivate inactive accounts. The move is intended to simplify the process of reclaiming dormant funds while ensuring that adequate safeguards remain in place to prevent fraud and unauthorized access.

The decision was formally communicated in a regulatory circular issued to banks and other financial institutions across Nigeria. The updated directive forms part of a broader policy review aimed at improving transparency, reducing administrative barriers for account holders, and strengthening the management of dormant financial assets within the banking system.

Policy Revision Aimed at Simplifying Account Reactivation

The revised policy was outlined in a document 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 replaces an earlier directive issued in February 2025 and took effect immediately upon release. The updated guidelines were signed by Rita I. Sike, Director of the Financial Policy and Regulation Department at the central bank.

According to the regulator, the removal of the affidavit requirement followed consultations with banking industry stakeholders who expressed concerns about the administrative burden and inconvenience faced by customers attempting to reactivate dormant accounts.

For many account holders, obtaining an affidavit typically required visiting a court or legal office, which added additional costs and delays to the process. By eliminating this requirement, the central bank aims to streamline account reactivation procedures and make it easier for customers to reclaim their funds.

What Constitutes a Dormant Account?

In Nigeria’s banking system, an account is typically classified as dormant when it has remained inactive for an extended period, usually due to a lack of transactions initiated by the account holder.

Dormant accounts can arise for several reasons, including relocation of account holders, forgotten accounts, changes in financial institutions, or even the death of an account owner without proper notification to the bank.

Over time, large amounts of money can accumulate in such inactive accounts, leading regulators to establish frameworks designed to manage and eventually reunite these funds with their rightful owners.

The CBN’s guidelines aim to ensure that dormant financial assets are handled transparently and responsibly within the banking system.

Introduction of Alternative Reactivation Channels

In addition to removing the affidavit requirement, the central bank has also expanded the channels through which customers can request the reactivation of dormant accounts.

Under the revised framework, banks and other financial institutions are permitted to accept reactivation requests through alternative channels, rather than relying exclusively on in-person submissions at bank branches.

This development reflects the increasing adoption of digital banking services and is expected to improve accessibility for customers who may not be able to visit physical bank locations.

However, the regulator emphasized that institutions must ensure that any alternative channels are supported by robust identity verification and risk management procedures.

Stronger Identity Verification Still Required

Despite the removal of the affidavit requirement, the CBN stressed that banks must continue to maintain strict identification protocols when processing dormant account reactivation requests.

Financial institutions are required to implement enhanced verification procedures to ensure that the individual requesting account reactivation is indeed the rightful account holder.

These measures may include identity verification checks, biometric authentication, and other fraud-prevention mechanisms designed to protect both customers and the integrity of the banking system.

According to the regulator, such safeguards are essential to prevent unauthorized access to dormant funds, which can sometimes become targets for fraudulent activities.

Applicability of the New Rule

The removal of the affidavit requirement applies only to dormant accounts that have not yet been transferred to the Unclaimed Balances Trust Fund Pool Account (UBTF).

The UBTF Pool Account is a special account managed under regulatory oversight to hold unclaimed funds that remain dormant for extended periods.

For accounts that have already been transferred into this fund, customers seeking to reclaim their money will still be required to provide affidavits as part of the recovery process.

The central bank clarified that this distinction is necessary because funds held in the UBTF Pool Account are subject to additional legal and administrative procedures.

New Disclosure Requirements for Banks

Alongside the changes to account reactivation procedures, the central bank also introduced stronger disclosure requirements for banks and other financial institutions.

Under the updated guidelines, financial institutions are required to publicly disclose details of dormant accounts and unclaimed balances in order to increase transparency and encourage rightful owners to reclaim their funds.

The information that must be disclosed includes:

• The names of authorized account holders

• The type of account involved

• The name of the financial institution

• The branch where the account is domiciled

These disclosures must be made available on the official websites of financial institutions.

For banks that do not operate corporate websites, the information must instead be published on the official platforms of relevant industry associations.

Publication in National Newspapers

The central bank has also mandated that banks publish details relating to dormant accounts and unclaimed balances annually in at least two national newspapers.

However, if the list of dormant accounts exceeds two full pages, institutions may publish a shorter notice directing customers to a dedicated section of their corporate websites where the complete information can be accessed.

The objective of this measure is to raise public awareness and provide customers with multiple channels through which they can check whether they have dormant accounts.

Special Provisions for Microfinance Banks

Recognizing the unique operational realities faced by smaller financial institutions, the CBN provided certain exemptions within the new framework.

State and unit microfinance banks are not required to publish dormant account information in national newspapers. Instead, they are only expected to display the information at their physical business premises.

This approach aims to reduce compliance costs for smaller institutions while still ensuring that account holders have access to relevant information.

Alignment With Data Protection Laws

The central bank also addressed concerns raised by financial institutions regarding potential conflicts between disclosure requirements and data privacy regulations.

Officials clarified that the disclosure provisions in the new guidelines are fully consistent with the Nigeria Data Protection Act 2023.

Under the law, personal data may be processed or disclosed when such action is necessary to comply with a legal obligation or to protect the vital interests of individuals.

The CBN therefore stated that publishing information about dormant accounts falls within the permissible scope of the data protection framework.

Promoting Transparency and Financial Accountability

The revised guidelines represent part of the central bank’s broader efforts to strengthen transparency and accountability within Nigeria’s financial sector.

By simplifying the process of reactivating dormant accounts while maintaining strong verification safeguards, the CBN aims to ensure that individuals can more easily reclaim funds that rightfully belong to them.

At the same time, the enhanced disclosure requirements are expected to improve public awareness about dormant accounts and reduce the volume of unclaimed financial assets within the banking system.

As Nigeria’s financial sector continues to evolve with increased digitalization and regulatory oversight, such policy adjustments are seen as essential for maintaining public confidence in the banking system and ensuring that financial resources remain accessible to their rightful owners.