Nigerians Rush to First Bank, Access, Others to Activate Accounts as Dormant Users Increase
- Nigeria has around 19.69 million dormant bank accounts, according to NIBSS's industry customer account database
- The data which shows a continued rise in inactive accounts, is consistent with the CBN's new regulatory procedures
- Dormant accounts have continuously topped 19 million since February 2024, with 19,697,125 inactive accounts at the end of December
Don't miss out! Join Legit.ng's Sports News channel on WhatsApp now!
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The Nigeria Inter-Bank Settlement System's industry customer account database indicates that there are more than 19.69 million dormant bank accounts in Nigeria.
Source: Getty Images
The Central Bank of Nigeria's new regulatory procedures, which require commercial banks to disclose information about dormant accounts, are in line with the data, which records monthly account statuses throughout 2024 and shows a steady increase in inactive accounts.
In response to worries that a sizable portion of accounts had lain dormant for protracted periods of time, the CBN issued the directive to improve transparency and return unclaimed funds to their rightful owners.
Since February 2024, dormant accounts have consistently above 19 million, with December ending with 19,697,125 inactive accounts, according to NIBSS data.
This is a 6.51% gain over the previous year, up 1,205,000 from January's total of 18,492,169.
Prior to a minor decline in the second half of the year, the number peaked in May and June at 20.57 million.
According to the data, the number of dormant accounts increased by 2.08 million between the first half of 2024 and the CBN's July directive on these accounts.
The Punch reported that many bank customers impacted by the new CBN guidelines on dormant accounts hurried to their various banks on Tuesday to revive the accounts after receiving the instruction.
The NIBSS data shows that the number of dormant accounts decreased by 1.59 million as a result of the CBN mandate. The other months of the year had a varying uptick following the fall.
Additionally, closed accounts demonstrated a steady increase, rising from 21.71 million in January to 25.48 million in December. The NIBSS data shows that 3.78 million accounts were closed in 2024 for the whole year.
In the same time frame, the number of active accounts increased dramatically as well, from 209.31 million in January to 311.65 million in December. With 102.3 million more accounts, the growth rate is 48.9%, suggesting that banking activity and financial inclusion are still growing.
On its official websites, the CBN previously reiterated its order for all banks and financial institutions to make information on dormant accounts, unclaimed balances, and other financial assets publicly available.
Source: Getty Images
A bank account is considered dormant if it hasn't been used for a minimum of a year.
A circular outlining the directive was released on Monday, and Michael Akuka signed it on behalf of the director of the Financial Policy and Regulation Department at CBN.
CBN opens window to claim fund from dormant account
Legit.ng reported that the CBN announced that next-of-kin, beneficiaries or legal guardians can now claim funds from dormant accounts by applying to banks and other financial institutions.
A report said the new directive provides a clear path for reclaiming unclaimed balances to ensure the right owners can access funds in dormant accounts for extended periods.
Applicants must submit legal documents, proving ownership, and authorising them to make claims.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
